Jupiter Fund Management exec likens deal to RBS’ purchase of ABN Amro
by Alice Young: Monday, 09 Nov 2015 08:40 GMT
A senior executive at one of the City’s biggest fund managers has attacked Royal Dutch Shell’s (LON:RDSA) proposed takeover of BG Group (LON:BG), The Times has reported. The comments come after the Anglo-Dutch giant’s chief executive moved to reassure investors last week that the tie-up was still compelling despite the increasingly bearish outlook for oil prices.
Shell’s share price has been steady in early morning trading today, having added 0.32 percent to 1,717.50p as of 08:01 GMT, largely in line with gains in the blue-chip FTSE 100 index. BG Group’s share price currently stands 0.15 percent higher at 1,028.50p.
The Times this morning quoted Ian McVeigh, head of governance at Jupiter Fund Management, as likening Shell’s proposed tie-up with its smaller London-listed rival BG to the disastrous purchase of ABN Amro by Royal Bank of Scotland Group (LON:RBS) in 2007, soon before the financial crisis.
“Hugely expensive moves whose main purpose is to rebalance portfolios have a grim history,” McVeigh pointed out. He, however, was speaking on his own account and Jupiter has not expressed an opinion on the deal, which is expected to complete early next year.
“This deal is not big enough to do to Shell what ABN did to RBS, but I think it is still highly material,” McVeigh said, urging the Anglo-Dutch group’s shareholders to “think hard about this deal and be prepared to show Shell that they care greatly how their money is being spent”.
His comments come after Shell’s chief executive Ben van Beurden told investors last week that it now expected the deal to break even with oil prices in the mid-$60s, down from its previous estimate of $70.
“Although oil prices have fallen in 2015 the valuation case for the BG acquisition still looks compelling today for both sets of shareholders,” van Beurden pointed out.
Shell’s shareholders will have the opportunity to vote on the merger once various regulatory hurdles have been cleared, with the exact date yet to be disclosed.
As of 08:41 GMT, Monday, 09 November, Royal Dutch Shell Plc ‘A’ share price is 1,726.00p.
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.
