Financial Times: Lex live: Royal Dutch/Shell
6 June 2005
When crude prices are high, acquisitions are tough for an oil company to justify. But as Peter Voser, chief financial officer, reiterated on Monday, after the planned merger of Royal Dutch with Shell, at least the oil major could use its paper as currency for a deal.
Shell emphasises that the ability to issue paper does not mean a significant deal is under consideration. It is committed to organic growth and share buybacks. A transformational deal, which would undermine confidence in this strategy, is unlikely. A merger with another international major would also face significant political and regulatory hurdles.
Pursuit of smaller, second-tier targets appears more likely. The problem remains of what to buy – and Shell’s management does not have a credible acquisition track record. Competition for individual assets is fierce following the arrival of China and India as buyers. Corporate action may be the easier route, but valuation is a problem. Many potential targets, such as oft-mentioned BG Group, are highly rated. With crude at $55 a barrel, even an all-share deal might induce shareholder apoplexy. Hedging the target’s future production to take advantage of the current high level of forward prices could, however, help justify the premium paid to acquire control.
The alternative is for Shell to raise its forecast for long-term oil prices and risk shareholder disapproval. Rising oil prices made Shell’s much-criticised purchase of Enterprise Oil more attractive in hindsight. But paying up for a snack-sized target would do little to alter Shell’s unattractive production profile. Unfortunately, even if it is prepared to pay the price, there is no quick fix for Shell.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
