By Mushhood Khan on Jan 5, 2016 at 9:46 am EST
Just as Royal Dutch Shell plc (ADR) (NYSE:RDS.A) edges closer to its $50 billion takeover of BG Group, investors are losing confidence in the company.
Shell has secured regulatory approval from related authorities across the globe; the deal now only requires the shareholders’ vote, which will be obtained later this month. With oil prices trading at record lows, fund managers who own stakes in both BG and Shell, have reduced their share in the former.
Capital Group, one of the world’s leading investment groups, sold off majority of its stake in the BG deal during December. According to its securities filings, the Group sold around $600 million of BG shares last month, bringing down its stake from 2.2% to 0.9%.