- Daily Zen
A large group of the world’s biggest financial experts is expected to back Shell’s beset multi-billion pound takeover of British Gas Group this week.
Shell-BG Group shareholders will vote on Wednesday and Thursday to favor the arrangement, which has raised doubt about the takeover since the dive in the oil price.
Despite the dire state of the oil industry, David Cumming, head of equities at Standard Life Investments, has been the most vocal adversary of the takeover, calling it catastrophic for Shell shareholders.
On the other hand, in spite of opposition over Shell overpaying for its rival – £ 47 billion – the vast majority of some of the biggest financial investors – a large number of whom hold stakes in both organizations – are relied upon to vote for the tie-up for the current week.
The powerful Anglo-Dutch firm also got some noteworthy support a week ago when the world’s greatest sovereign wealth fund Norway’s Norges, said it would support the Shell-BG takeover. The wealth fund is said to be BG Group’s second-biggest shareholder and Shell’s fifth-greatest. It has been proposed that the Qatar Investment Authority, which is a noteworthy Shell-BG shareholder, has approved the notable takeover.
Institutional Shareholder Services, a powerful advisory firm, upheld the takeover for its attractive vital method of reasoning.
Glass Lewis, which counsels with 12 of the 50 biggest financial investors in Shell-BG, is likewise in support.
BG shareholders need to vote for the arrangement with a 75 percent lion’s share and Shell needs a majority.