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Unification

Rudderless Shell still worth backing

FROM OUR JULY 2005 SHELL NEWS ARCHIVE…

The Independent: Rudderless Shell still worth backing

“The company has also created a single board, after blaming its double-headed, dual-nationality structure for the disasters of recent years. Shell had been overstating its reserves of oil, and had to fess up last year, cutting the number by one-third. But only last week the company revealed the development of its Sakhalin natural gas field in Russia was 100 per cent over budget, a whopping extra cost of $10bn (£5.8bn) that had not even been hinted when Shell sold part of the field earlier this month.”

The Investment Column: Edited by Stephen Foley

Published: Thursday 21 July 2005

Shell, the Anglo-Dutch oil giant, has merged its Anglo half, Shell Transport & Trading, with its Dutch half, Royal Dutch. If you owned 100 Shell shares on Tuesday, you now own 29 Royal Dutch Shell shares. They fell in value a little on their stock market debut yesterday, but hang on to them.

Strictly speaking, you own Royal Dutch Shell ‘B’ shares, while Netherlands investors own ‘A’ shares. The difference is that ‘A’ shares attract a Dutch tax, but that will usually be reflected in the lower price of the ‘A’ shares. It is all a little confusing and UK investors might as well stick to the ‘B’ shares, but the important thing is that the company you own still has the same assets and prospects as it had at the start of the week. read more

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New York Times: Court Approves Unification of Shell Group

FROM OUR JULY 2005 SHELL NEWS ARCHIVE

New York Times: Court Approves Unification of Shell Group

“The restructuring came amid a scandal over Shell’s restatement of its oil and gas reserves. In February the company announced the fifth restatement in just over a year. In all, reserves have been cut by 6.85 billion barrels to 11.9 billion barrels at the end of 2004.”

Tuesday 19 July 2005

By THE ASSOCIATED PRESS

THE HAGUE, Netherlands (AP) — A British court on Tuesday approved the unification of the Royal Dutch/Shell Group of Cos. into one corporation in time for the start of trading a day later.

Shell declared its public exchange offer for all ordinary shares of Royal Dutch unconditional, with nearly 92 percent of outstanding shares in the Dutch arm having been tendered. Stock in the joint company will be traded beginning Wednesday morning in London and Amsterdam as Royal Dutch Shell PLC. read more

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Scarcely a whimper as Shell votes for unification

Financial Times: Scarcely a whimper as Shell votes for unification

Wednesday 29 June 2005

By Ian Bickerton in Scheveningen

Dutch shareholders bade farewell to nearly a century of history in less than 45 minutes on Tuesday, overwhelmingly approving the unification of Royal Dutch and Shell, the two arms of the energy group.

Shortly afterwards shareholders in London also backed the unification plan.

The proposal prompted barely half-a-dozen gentle inquiries in the Netherlands, from elderly investors seeking reassurance that the company would continue to have its headquarters in the Netherlands and that they would be able to ask questions in Dutch at its annual meeting. read more

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Bid talk and Shell shake-up help Footsie

Financial Times: Bid talk and Shell shake-up help Footsie

By Robert Orr and Chris Flood

Published: Saturday July 23 2005

The London market ended a week that saw the historic unification of the Royal Dutch Shell oil company fractionally higher.

The blue-chip FTSE 100 gained 0.2 per cent last week, closing at 5,241.8 yesterday after a 20.2 points, or 0.4 per cent, rise on the day.

Yesterday’s rise of 28.4 points, 0.4 per cent, helped the broader FTSE 250 firm 0.3 per cent over the five-day period. It closed at 7,495.8.

While Royal Dutch Shell now trades as a single entity, accounting for about 8.2 per cent of the FTSE All Share, it somewhat confusingly has two shares quoted on the London Stock Exchange. read more

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The Age.com (Australia): Royal Dutch Shell shares fall on debut

The Age.com (Australia): Royal Dutch Shell shares fall on debut

Thursday July 21, 2005 – 7:54AM

Shares in oil giant Royal Dutch Shell Plc, formed by the unification of Royal Dutch and Britain’s Shell Transport and Trading, slipped on their market debuts on Wednesday as fund buying tapered off.

Shell “A” shares, which originate from the oil company’s former Dutch parent, fell when trading opened and closed down 3.18 percent at 1,766-1/2 pence.

Shell “B” shares, which spring from its former UK parent, opened up and then slipped to close 1.69 per cent lower. read more

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Unified Shell fails to fire investors on LSE debut

Financial Times: Unified Shell fails to fire investors on LSE debut

“Shell shocked the market last week by disclosing that its Russian gas project, Sakhalin-2, was at least eight months behind schedule and $10bn (£5.75bn) over budget.”: ”Gazprom, Russia’s state-controlled gas monopoly, recently indicated that it was seeking to improve the terms of an asset swap agreed with Shell this month, under which it would take a 25 per cent stake in Sakhalin-2.”

By Thomas Catan

Published: Thursday July 21 2005

Shares in the newly unified Royal Dutch Shell fell on their first day of trading yesterday, as investors turned their attention from the reorganisation of the Anglo-Dutch energy group to the health of its business.

Moody’s Investor Service, the international ratings agency, said it was maintaining a negative outlook on Shell as it studied the company’s exploration and production business. It also promised to assess the “implications of rising capital costs and its ability to show improved capital returns on long-term investments”. read more

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Shell’s rush for Russia dampens stock debut

Financial Times: Shell’s rush for Russia dampens stock debut

“Investors yesterday were queueing to buy shares in Russian gas company Novatek and to dump the new unified Royal Dutch Shell on their London market debuts.”: “The reason behind this odd reversal of roles is that Shell must still convince the markets it can resolve its reserve problems, along with the $10bn additional hit it is taking on its flagship Russian gas project.”: “If these difficulties persist, they are likely to revive talk of a Total-Shell mega-merger as the best way forward.”

Thursday 21 July 2005

By Paul Betts

Published: July 21 2005

Investors yesterday were queueing to buy shares in Russian gas company Novatek and to dump the new unified Royal Dutch Shell on their London market debuts.

This may seem puzzling, given Moscow’s efforts to regain control of its energy industry and what should have been a red-letter day for the Anglo-Dutch major.

The reason behind this odd reversal of roles is that Shell must still convince the markets it can resolve its reserve problems, along with the $10bn additional hit it is taking on its flagship Russian gas project. read more

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.

Rudderless Shell still worth backing

The Independent: Rudderless Shell still worth backing

“The company has also created a single board, after blaming its double-headed, dual-nationality structure for the disasters of recent years. Shell had been overstating its reserves of oil, and had to fess up last year, cutting the number by one-third. But only last week the company revealed the development of its Sakhalin natural gas field in Russia was 100 per cent over budget, a whopping extra cost of $10bn (£5.8bn) that had not even been hinted when Shell sold part of the field earlier this month.”

The Investment Column: Edited by Stephen Foley

Published: Thursday 21 July 2005

Shell, the Anglo-Dutch oil giant, has merged its Anglo half, Shell Transport & Trading, with its Dutch half, Royal Dutch. If you owned 100 Shell shares on Tuesday, you now own 29 Royal Dutch Shell shares. They fell in value a little on their stock market debut yesterday, but hang on to them.

Strictly speaking, you own Royal Dutch Shell ‘B’ shares, while Netherlands investors own ‘A’ shares. The difference is that ‘A’ shares attract a Dutch tax, but that will usually be reflected in the lower price of the ‘A’ shares. It is all a little confusing and UK investors might as well stick to the ‘B’ shares, but the important thing is that the company you own still has the same assets and prospects as it had at the start of the week. read more

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.

ANOTHER BAD NEWS DAY FOR SHELL

ANOTHER BAD NEWS DAY FOR SHELL

LONDON TIMES ARTICLE IMPLIES THAT SHELL ISSUED A FALSE PROSPECTIVE FOR ITS MERGER: THE INDEPENDENT SAYS THAT SHELL IS “RUDDERLESS”: FT CLAIMS THAT INVESTORS DUMPED THE NEW UNIFIED SHELL SHARES ON THEIR DEBUT DAY AND REVIVES DESIRABLE PROSPECT OF TOTAL/SHELL MEGA-MERGER

Thursday 21 July 2005

By Alfred Donovan

We warned just a few days ago of the huge potential ramifications of the Sakhalin-2 cost overrun debacle. We are pleased to see that the mainstream press has now also picked up on the implications. Our article, first published on Monday 18 July is reprinted below: –

ShellNews.net: THE SHELL SAKHALIN-2 DEBACLE: Credibility concerns over Royal Dutch/Shell Executives, Jeroen van der Veer and Malcolm Brinded following the Salhalin2 $10 billion cost overrun scandal.: “The only thing which has saved the hangover management at Shell is the one element over which they have no influence – the high oil price. In every other respect they are an unmitigated disaster. They should be sent packing.”: Monday 18 July 2005 read more

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Royal Dutch Shell starts trading as single company

Financial Times: Royal Dutch Shell starts trading as single company

“For the first time in its 98-year history, Royal Dutch Shell will trade today as a single, unified company in London…”:

Wednesday 20 July 2005

By Thomas Catan and Philip Stafford

FRONT PAGE – FIRST SECTION:

For the first time in its 98-year history, Royal Dutch Shell will trade today as a single, unified company in London after 91 per cent of investors in Royal Dutch agreed to tender their old shares.

The company needed 95 per cent of Dutch shareholders to agree to the offer but it was able to invoke a clause allowing approval at lower levels.

The High Court also sanctioned the scheme of arrangement yesterday, the final step before a formal listing. read more

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Van der Veer’s vision for a unified Shell

Financial Times: COMPANIES UK: Van der Veer’s vision for a unified Shell

“Jeroen van der Veer, the first chief executive of the newly restructured Royal Dutch Shell, is used to skating on thin ice.”: “The company was already struggling with its reserves figures before it had to cut them five times last year.”

Wednesday 20 July 2005

By Thomas Catan

Jeroen van der Veer, the first chief executive of the newly restructured Royal Dutch Shell, is used to skating on thin ice.

The 57-year-old Dutchman has twice completed the Elfstedentocht 135-mile race along frozen canals through 11 cities in the Netherlands.

But even that cannot be as demanding as the task at hand – righting the third largest oil company following its devastating reserves accounting crisis last year.

The debacle spurred a boardroom purge, class-action lawsuits and a complete reorganisation of the company’s century-old governance structure. read more

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Daily Telegraph: Shell ready to go to court over rump shareholding

Daily Telegraph: Shell ready to go to court over rump shareholding

“More than 8pc of investors in Royal Dutch Petroleum have failed to accept the terms of the merger with Shell Transport and Trading to create a £100billion oil and gas giant called Royal Dutch Shell.”

Wednesday 20 July 2005

By Christopher Hope, Business Correspondent (Filed: 20/07/2005)

More than 8pc of investors in Royal Dutch Petroleum have failed to accept the terms of the merger with Shell Transport and Trading to create a £100billion oil and gas giant called Royal Dutch Shell.

However, enough shareholders – 91.7pc – in Royal Dutch Petroleum have backed the deal to ensure that the merger will go through today.

The deal, which was brought about after the company wrongly categorised over a fifth of its proven oil and gas, has been criticised in the UK after it left about 3,000 British shareholders facing a £77m capital gains tax bill. This is because the Inland Revenue treats the share swap as a disposal. read more

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The High Court in London has approved the landmark proposal to unify dual-listed structure of Royal Dutch Shell

The Times: The High Court in London has approved the landmark proposal to unify the dual-listed structure of Royal Dutch Shell, the Anglo-Dutch oil and gas group.

Wednesday 20 July 2005

NEED TO KNOW

Natural Resources

Up 0.4%

Venture Production, the Aberdeen oil and gas company, has privately placed £29 million of convertible bonds due in October 2010, convertible at a 16 per cent premium to the company’s last trade.

The High Court in London has approved the landmark proposal to unify the dual- listed structure of Royal Dutch Shell, the Anglo-Dutch oil and gas group.

Consolidated Minerals, the Australian group listed on the Alternative Investment Market, increased the resource estimate at its Reliance nickel project in Western Australia by 36 per cent after a drilling programme. read more

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.

The Guardian: New Shell shares start trading

The Guardian (UK): New Shell shares start trading

“The merger is one of a number of measures implemented after last year’s damaging reserves overbooking scandal which dented investor confidence.”: “Under the terms of the merger the new company will be listed in London and will have its headquarters in the Netherlands.”

Wednesday 20 July 2005

Mark Milner

Wednesday July 20, 2005

Shares in Royal Dutch Shell will begin trading in London this morning after the world’s third-largest oil group cleared the last hurdle in the merger of its UK and Dutch components.

Almost 92% of Royal Dutch shareholders have exchanged their shares for a stake in the unified group, allowing the deal with Shell Transport and Trading to go ahead.

“Shareholders have shown strong support throughout the process and voted overwhelmingly in support of the proposals at the recent shareholder meetings to move to one company,” chief executive Jeroen van der Veer said. read more

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THE NEW YORK TIMES: Shell Turns a Stock Page but Has Chapters to Go

THE NEW YORK TIMES: Shell Turns a Stock Page but Has Chapters to Go

“A year and a half after a reserve scandal that sank Shell’s stock, ended its reputation as a conservative company and forced the ouster of three of its top executives, the company is still remaking itself, analysts and investors say.”: “Shell deflated investor confidence again last week, when it said that costs at the Sakhalin II project, which it is leading, could double to $20 billion, and that the project might be delayed for half a year.”: “Where are the project-management skills Shell said they were going to demonstrate last fall?” Mr. McMahon said. “There is not enough in terms of pushing this company into a new place, and they’re not going to get anywhere fast.” read more

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Reuters: FTSE up as GUS charges, but Shell shows cracks: SHELL TROUBLED

Reuters: FTSE up as GUS charges, but Shell shows cracks: SHELL TROUBLED

“Royal Dutch Shell was the main drag on the market as the restructuring of the oil titan took effect but its two lines of stock both fell as tracker fund buying tapered off [nL20439638] and attention shifted back to more fundamental issues such as replacing its reserves and problems at its massive Russian Sakhalin-2 project.”

Wed Jul 20, 2005 5:09 PM BST

By Steve Slater

LONDON, July 20 (Reuters) – Britain’s top shares rose on Wednesday to halt a three-day losing run as retailer GUS (GUS.L: Quote, Profile, Research) was boosted by another set of bumper results from its Experian arm, but a restructured Royal Dutch Shell made a soggy arrival as Europe’s second biggest firm.

Mining stocks were buoyed by upbeat production numbers from Rio Tinto (RIO.L: Quote, Profile, Research), but GUS was the star performer with a 5.5 percent rally to a 3-month high after rampant growth at credit-checking unit Experian continued, with a 26 percent rise in its first quarter underlying sales. [nL20293448] read more

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AFX News Limited: Royal Dutch Shell ratings outlook kept at negative by Moody’s

AFX News Limited: Royal Dutch Shell ratings outlook kept at negative by Moody’s

“It recalled that RDS recently announced that cost overruns on Phase 2 of the Sakhalin II liquefied natural gas project could potentially double the original total project costs to 20 bln usd through 2014.”

Wednesday 20 July 2005

AMSTERDAM (AFX) – Moody’s Investors Service said it kept a negative outlook on the Aa1 ratings of Royal Dutch Shell PLC following the oil company’s creation of a holding company to unify its dual ownership structure.

The credit ratings agency said it ‘is maintaining a negative outlook on RDS’s Aa1 long-term rating as it continues to gauge RDS’s upstream performance and the positioning of the Aa1 long-term rating relative to those of its strongest rated peer companies.’ read more

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FORBES: Court Expected to OK Unification of Shell

FORBES: Court Expected to OK Unification of Shell

“A British court was expected Tuesday to approve the unification of the Royal Dutch/Shell Group of Cos. into one corporation in time for the start of trading a day later.”

Tuesday 19 July 2005

A British court was expected Tuesday to approve the unification of the Royal Dutch/Shell Group of Cos. into one corporation in time for the start of trading a day later.

Shell declared its public exchange offer for all ordinary shares of Royal Dutch unconditional, with nearly 92 percent of outstanding shares in the Dutch arm having been tendered. Stock in the joint company will be traded beginning Wednesday morning in London and Amsterdam as Royal Dutch Shell PLC.

Assets of the oil giant are currently split 60-40 between Royal Dutch Petroleum, based in The Hague, Netherlands, and the London-based Shell Transport & Trading Co. read more

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Royal Dutch/Shell merger declared unconditional

Reuters: UPDATE 2-Royal Dutch/Shell merger declared unconditional: “The merger is aimed at restoring confidence in Shell, after a damaging reserves-overbooking scandal last year…”

Tuesday 19 July 2005

By Karl Hanuska and Tom Bergin

AMSTERDAM/LONDON, July 19 (Reuters) – Royal Dutch/Shell Group (RD.AS: Quote, Profile, Research)(SHEL.L: Quote, Profile, Research) has cleared the final hurdle in the planned merger of its Dutch and UK holding companies, after Royal Dutch shareholders pledged their shares to the deal.

The world’s third-largest oil group by market capitalisation said on Tuesday that 91.69 percent of shares in Royal Dutch, which owns 60 percent of the dual-headed group, had been tendered for exchange into shares in the unified firm. read more

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New York Times: Court Approves Unification of Shell Group

New York Times: Court Approves Unification of Shell Group

“The restructuring came amid a scandal over Shell’s restatement of its oil and gas reserves. In February the company announced the fifth restatement in just over a year. In all, reserves have been cut by 6.85 billion barrels to 11.9 billion barrels at the end of 2004.”

Tuesday 19 July 2005

By THE ASSOCIATED PRESS

THE HAGUE, Netherlands (AP) — A British court on Tuesday approved the unification of the Royal Dutch/Shell Group of Cos. into one corporation in time for the start of trading a day later.

Shell declared its public exchange offer for all ordinary shares of Royal Dutch unconditional, with nearly 92 percent of outstanding shares in the Dutch arm having been tendered. Stock in the joint company will be traded beginning Wednesday morning in London and Amsterdam as Royal Dutch Shell PLC. read more

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Shell shock

Financial Times: Shell shock

“Italian investors holding nearly €1bn worth of Royal Dutch and Shell Transport shares will be unable to take part in the oil major’s ground-breaking corporate unification by exchanging their current holdings into new Royal Dutch Shell shares.”

Thursday 14 July 2005

By Paul Betts

Published: July 14 2005

So much for the Schengen border-free zone and European financial harmonisation. Regulatory hurdles are blocking investors domiciled not only in the US, Japan and New Zealand, but also in Italy, from participating in one of the year’s biggest share offers.

Italian investors holding nearly €1bn worth of Royal Dutch and Shell Transport shares will be unable to take part in the oil major’s ground-breaking corporate unification by exchanging their current holdings into new Royal Dutch Shell shares. read more

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.

The Guardian (UK): Dip in oil sector fails to halt FTSE 100

The Guardian (UK): Dip in oil sector fails to halt FTSE 100

“In the past month, Shell has risen 16% as index-tracking funds have positioned themselves for its merger with sister company Royal Dutch. The deal will create a company with a market value of around £130bn… The unification is due to be completed a week tomorrow…”

Tuesday July 12, 2005

Neil Hume

The FTSE 100 pushed on to a fresh three-year high yesterday despite a weak performance from the heavyweight oil sector, which was hit by a flurry of profit-taking as the crude price fell back from recent highs.

London’s strong showing was largely down to Wall Street, which rose an impressive 147 points on Friday and managed a further advance in early dealings yesterday. That said, Vodafone also made a contribution. The mobile phone group climbed 1.75p to 141p as two leading brokers advised clients to pick up stock. US bank Lehman Brothers started the ball rolling by recommending a switch out of BT Group, up 0.75p to 229.75p. read more

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Financial Times: Tracker funds bulk up in Shell shares

Financial Times: Tracker funds bulk up in Shell shares

Saturday 9 July 2005

By Robert Budden

Published: July 9 2005

Fluctuations in the oil price will have an even bigger impact on the UK stock market come July 20 when the unification of different Shell share classes formally takes effect. The change will turn oil and gas shares into the biggest constituents of the FTSE 100 index and, following a strong recent run on its shares, Shell looks set to become the biggest company in the FTSE, narrowly beating the other UK-listed oil giant BP.

Under the changes, Shell Transport & Trading and Royal Dutch Petroleum, the London and Netherlands arms of the global oil group, will be unified into Royal Dutch shares. Shell currently makes up 4.4 per cent of the FTSE 100. From July 20, this will rise to about 10 per cent. read more

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Daily Telegraph: Van the Builder must Shell out for 3,000

Daily Telegraph: Van the Builder must Shell out for 3,000

“These shareholders have been treated shabbily. Yet Jeroen van der Veer, Shell’s chief executive, says there is nothing left in his tool-box to help them, which seems careless after spending $115m on advice.”

Saturday 9 July 2005

City comment

Edited by Neil Collins

(Filed: 09/07/2005)

Shell lowers threshold for merger to go through

More news from Shell, which is trying to merge its British and Dutch parts into a monolith called Royal Dutch Shell. The £100billion deal was proceeding smoothly until yesterday, when Shell suddenly cut the required level of acceptances for Dutch investors from 95pc to 75pc.

The company’s PR machine had no convincing explanation for this, but some of Shell’s army of observers reckon it betrays nerves, at least among the advisers. One difficulty is with the 3,000 British holders of Royal Dutch shares, who are being hit with a capital gains tax bill even though they are not selling, and rather than meekly accept and pay the tax – estimated at £177m between them – they are likely to sit on their hands and see what happens. read more

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More investors caught by Shell merger

Financial Times: More investors caught by Shell merger

Investors in Royal Dutch face further confusion ahead of the unification of the oil group’s holding companies, it emerged this week.

Saturday 9 July 2005

By Alexander Jolliffe

Published: July 9 2005

Investors in Royal Dutch face further confusion ahead of the unification of the oil group’s holding companies, it emerged this week.

As has already been reported, UK investors in Royal Dutch who accept shares in the newly unified Royal Dutch Shell are treated as if they had sold their stock, triggering a potential capital gains tax (CGT) bill. Investors in Shell Transport & Trading do not face a liability.

The Association of Private Client Investment Managers and Stockbrokers estimates that about 3,000 UK investors could have to pay about £60m in tax. Apcims says British shareholders are the only people affected by “enormous” tax bills which are “totally unfair”. read more

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Shell says could lower minimum share exchange acceptances from 95 pct to 75 pct

Forbes.com: Shell says could lower minimum share exchange acceptances from 95 pct to 75 pct

“The Royal Dutch Shell group of companies said they reserve the right to lower the minimum acceptance level for the share exchange that creates the unified Royal Dutch Shell PLC from 95 pct to as low as 75 pct.”

Friday 8 July 2005

LONDON (AFX) – The Royal Dutch Shell group of companies said they reserve the right to lower the minimum acceptance level for the share exchange that creates the unified Royal Dutch Shell PLC from 95 pct to as low as 75 pct.

Shareholders of both Royal Dutch Petroleum Co NV and Shell Transport and Trading Co PLC have already approved the move by overwhelming majorities.

The group said today’s announcement is not an indication of the current level of acceptances on the exchange offer and does not mean the minimum acceptance level will actually be reduced. read more

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Royal Dutch/Shell shareholders vote to unify their British and Dutch holding companies

Financial Times: The Week: “At last they are one. Royal Dutch/Shell shareholders voted to unify their British and Dutch holding companies, shedding a dual structure that critics claimed had contributed to the oil reserves debacle and slowed decision making.”

Saturday 2 July 2005

By Jamie Chisholm

RESOURCES

At last they are one. Royal Dutch/Shell shareholders voted to unify their British and Dutch holding companies, shedding a dual structure that critics claimed had contributed to the oil reserves debacle and slowed decision making.

Royal Dutch Shell, as it will be called after July 20 (in a Tippex-friendly move, the slash disappears) will be incorporated and have its primary listing in London but its head office in The Hague.

The simplified structure will make it easier for Shell to pay for acquisitions by issuing equity: a development not missed by the market, which highlighted BG Group as a target. read more

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Shell symmetry

Financial Times: Shell symmetry

Thursday 30 June 2005

By Clay Harris

Next only to chairman Lord Oxburgh, Peter Voser, Shell’s chief financial officer, deftly carried much of the burden at Tuesday’s marathon session that approved the unification of its Dutch and UK arms. His brief ranged far beyond financial matters, reflecting his operational experience not only in a previous stint at Shell but also at ABB Asea Brown Boveri.

Something looks familiar about Voser. That’s it! He’s grey instead of ginger, Swiss instead of Scottish, but otherwise bears a striking resemblance to Charles Kennedy. read more

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The Guardian (UK): Rowdy meeting ends Shell’s 100-year split

The Guardian (UK): Rowdy meeting ends Shell’s 100-year split

Terry Macalister

Wednesday June 29, 2005

Shell shareholders voted by over 97% yesterday to end 100 years of dual company structure by merging the British and Dutch arms of the oil group into a £125bn business.

But the Shell board suffered a turbulent time at the company’s annual meeting in London before the vote was taken.

There was particular anger from small shareholders of Royal Dutch stock who accused the board of leaving them “hung out to dry” because they would have to pay capital gains tax of 40%. read more

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Lloyds List: Unified Shell group gives greater growth potential

Lloyds List: Unified Shell group gives greater growth potential

“Royal Dutch Shell is set to be reborn on July 20″

Wednesday 29 June 2005

Shareholders of Shell and Royal Dutch Petroleum approve joint structure, writes Martyn Wingrove

SHAREHOLDERS of Shell and Royal Dutch Petroleum approved plans to unify the corporate structure of the group, ending almost a century of duel ownership and creating a GBP120bn ($220bn) company.

Royal Dutch Shell is set to be reborn on July 20, when shares in the combined group will be issued on the London stock exchange, giving Shell a stronger position for organic growth and acquisitions. read more

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At a stroke, Shell opens new chapter

Financial Times: At a stroke, Shell opens new chapter

“The oblique stroke will not disappear from Royal Dutch/Shell until next month, when the High Court is due to approve the scheme of arrangement that unifies the two groups.”

Wednesday 29 June 2005

By Clay Harris

Published: June 29 2005

Shareholders in Shell Transport and Trading and their counterparts at Royal Dutch yesterday voted to remove the slash their fathers wore. The oblique stroke will not disappear from Royal Dutch/Shell until next month, when the High Court is due to approve the scheme of arrangement that unifies the two groups. But the annual meeting at the ExCel centre in London’s Docklands marked the end of a very long era.

For one thing, unless the new company’s board decides otherwise, it will be the last annual meeting in the UK. Although a UK plc, Royal Dutch Shell will hold its annual meetings in the Netherlands, with a video link back to Britain. read more

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Shell to consider acquisitions under $9bn

Financial Times: Shell to consider acquisitions under $9bn

Wednesday 29 June 2005

By James Boxell and Thomas Catan in London and Ian Bickerton in Scheveningen

Royal Dutch/Shell is understood to be considering acquisitions worth up to $9bn (£4.9bn) in the immediate aftermath of the historic unification of its Dutch and British holding companies.

Shareholders brought an end to nearly 100 years of corporate history on Tuesday when they voted overwhelmingly to merge the two arms of the Anglo-Dutch energy group.

The overhaul was primarily in response to last year’s reserves scandal, which forced the company to cut its proved oil and gas reserves by one-third and led to the removal of its three most senior executives, $150m of fines and several class-action lawsuits. read more

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Shell ends era of dual ownership

THE TIMES (UK): Shell ends era of dual ownership

Wednesday June 29, 2005

By Peter Klinger

ROYAL DUTCH SHELL shareholders voted overwhelmingly yesterday in favour of plans to scrap the oil and gas giant’s dual-ownership structure, closing a century-old chapter in British corporate history.

The restructuring, supported by massive majorities at shareholder meetings in London and The Hague, will result in the formation of a unified Royal Dutch Shell, based in the Netherlands but with a main listing on the London Stock Exchange. The votes bring an end to London-based Shell Transport and Trading as a standalone company, established in the late 19th century. read more

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Shell will grow from familiar roots

THE TIMES (UK): Shell will grow from familiar roots

“After the merger, Shell’s seat of power moves to The Hague. This should not be surprising, given that the mistakes of the past decade were mainly the fault of deluded or inadequate British executives…”

Wednesday 29 June 2005

By Carl Mortished

LIKE KIDS on a see-saw, stock market investors are playing with Shell, rebalancing it in the FTSE 100 index, but precious few are paying attention to the cultural shift within the firm.

Shell is restoring engineering as its prime purpose, a change in the company’s equilibrium that will have more impact than a few billion shares bought or sold. There is now a capital flight towards Shell; the merger of its Dutch and British parents into a UK plc, agreed yesterday and to be completed late next month, has the happy consequence of enlarging Shell’s weighting from 3.5 per cent to almost 9 per cent of the FTSE. British funds that benchmark their performance on the index of leading shares must buy more Shell to keep their portfolios in balance. read more

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Shell mugs up on its history and pours oil on troubled waters: Shell merger approved amid fury over tax bill

Daily Telegraph (UK): Shell mugs up on its history and pours oil on troubled waters: Shell merger approved amid fury over tax bill

“No wonder private shareholders are cross. They have been treated shabbily, particularly since they are long-term investors who stood by the company during its crisis when it lost one in four of its barrels last year.”

Wednesday 29 June 2005

City comment

Edited by Kate Rankine, Deputy City Editor (Filed: 29/06/2005)

Sometimes Shell just can’t seem to help itself. Investors trooping out of yesterday’s historic meetings were handed gold-rimmed mugs commemorating “The ‘Shell’ Transport and Trading Company plc, 1907-2004”. read more

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Stars aligning for Royal Dutch Shell

MarketWatch.com: Stars aligning for Royal Dutch Shell

Tuesday 28 June 2005

Rising crude price, index reweighting giving a boost

By Steve Goldstein, MarketWatch

LONDON (MarketWatch) — For a company recovering from a scandal surrounding its overstatement of proven oil reserves, the stars could hardly be aligning better for Royal Dutch Shell.

Shell (RD: news, chart, profile) (SC: news, chart, profile) , like the entire energy category, is benefiting from record crude-oil prices that have now topped $60 a barrel.

And, assuming shareholder approval Tuesday of the merger of its Dutch-listed company, Royal Dutch Petroleum, which presently holds 60% of assets, with U.K.-listed Shell Trading and Transport, which holds 40%, it should get a lift from index funds as well as more active investors having to meet the company’s increased standing in the FTSE 100 index as well as other European indexes. read more

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Financial Times: Much agonising over what to do

Financial Times: Much agonising over what to do

Tuesday 28 June 2005

The shareholder base of Royal Dutch and Shell Transport and Trading is so varied that investors inevitably disagree on whether the restructuring marks the end or the beginning of reform for the group, writes Sundeep Tucker.

At the height of the scandal last summer over the level of oil reserves it had booked, Jeroen van der Veer, the group’s lead executive, held a number of meetings with shareholders in the US, The Hague and the City of London. The discussions centred on investor demand for a structure that would foster accountability and transparency in decision-making. read more

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Shell prepares for the next merger round

Financial Times: Shell prepares for the next merger round

“The reserves debacle had seriously dented shareholder confidence”

Tuesday 28 June 2005

By Ian Bickerton, James Boxell, Thomas Catan and Henry Tricks

On the top floor of London’s towering Shell Centre, a cavernous boardroom looms over the Houses of Parliament, filled with high-backed chairs and rows of angled microphones. For decades, British and Dutch directors from two separate companies have held eight “conferences” a year, alternating between there and The Hague, to decide on the business of Royal Dutch/Shell Group. But if shareholders on Tuesday approve the most radical restructuring in its history, the London room will fall into disuse. Instead, board members will assemble each time in a gabled building, topped by a clock tower, in the vicinity of the Dutch parliament. read more

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UK holdings of Shell far too low

Financial Times: UK holdings of Shell far too low

Tuesday 28 June 2005

By Tony Tassell, Tom Catan, Ian Bickerton, James Boxell and Sundeep Tucker,

UK institutional shareholders still need to buy billions of pounds worth of shares in Shell to pump up their exposure to the oil major following its planned merger with Royal Dutch.

Holdings are far below what would be required to match the enlarged market weighting of a combined Royal Dutch Shell.

The merger has to be approved by Shell and Royal Dutch shareholders at their annual meetings today. It is widely seen as the potential trigger for one of the biggest shake-ups of the London market since Vodafone took over German rival Mannesmann in 2000. read more

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Record gas discovery in India could hit projects

The Times (UK): Record gas discovery in India could hit projects

June 28, 2005

By Carl Mortishead, International Business Editor

INDIA has claimed its biggest gas discovery, a deposit in the Bay of Bengal that could double the country’s gas production and bring into question major projects to import liquefied natural gas into the country.

Gujarat State Petroleum Corporation (GSPC), a state-owned enterprise, said that it had found 20 trillion cubic feet of gas in the Krishna Godavari Basin, an area offshore of Andhra Pradesh state in the southeast of the sub-continent. read more

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Shareholders Set to OK Shell Unification (AP)

Schaeffers Research, Ohio: Shareholders Set to OK Shell Unification (AP)

28 June 2005

By ANTHONY DEUTSCH Associated Press Writer

THE HAGUE, Netherlands

Shareholders are expected to approve the merger of the Anglo-Dutch parent companies of Royal Dutch/Shell on Tuesday, ending a century-old dual corporate structure at the world’s third largest oil producer.

Shell announced the plans along with its third quarter earnings on Oct. 28. The announcement came amid a scandal over the repeated downgrading of its strategic oil reserves, which form the backbone of its business. read more

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Shell investors set to ditch dual listed structure

Reuters: Shell investors set to ditch dual listed structure:nif

Tue Jun 28, 2005

By Tom Bergin, European Oil and Gas Correspondent

LONDON (Reuters) – Royal Dutch/Shell (SHEL.L: Quote, Profile, Research) (RD.AS: Quote, Profile, Research) shareholders are expected to end a century of history on Tuesday when they vote on scrapping the group’s dual-listed structure.

Shell hopes the unification of its Dutch and British parent companies will help streamline its management structure, whose complexity was blamed for a damaging reserves overbooking scandal last year. read more

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BBC News: Shell investors to vote on merger: Shell is planning the biggest overhaul in its 100-year history

BBC News: Shell investors to vote on merger: Shell is planning the biggest overhaul in its 100-year history

Tuesday 28 June 2005

Investors in Shell will be asked to vote on a plan to merge the Anglo-Dutch oil company’s two management boards, creating a firm worth £120bn ($219bn).

It is currently 40%-owned by Shell and 60%-owned by Royal Dutch Petroleum.

The move aims to simplify the chain of command and boost transparency after management was blamed for a crisis that saw Shell slash its reserves.

The merged firm would be called Royal Dutch Shell and its bigger size would allow it to better compete with rivals. read more

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Financial Times: Lombard: Shell game that keeps investors guessing

Financial Times: Lombard: Shell game that keeps investors guessing

Tuesday 28 June 2005

By Martin Dickson

Forget Suduko. The mind-boggling numbers game that is currently occupying fund managers is how to rearrange holdings of Royal Dutch and Shell following expected shareholder approval on Tuesday of the merger of the Dutch and British companies.

Effectively, unification will bring a £73bn colossus, in the shape of Royal Dutch, onto the top table of the FTSE 100. At a stroke, the oil sector will gain a weighting of about one fifth of the FTSE 100, roughly equal to banks, making the UK market even more defensive, concentrated and top heavy than it has been until now. read more

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Financial Times: OBSERVER: Circular Shell

Financial Times: OBSERVER: Circular Shell

Tuesday 28 June 2005

ABN Amro has invested considerable energy down the years in its relationship with Royal Dutch/Shell, the oil and gas giant whose shareholders are today expected to vote to scrap nearly a century of dual-headed governance.

The Dutch bank is itself the product of a patchwork of mergers since the late 19th century, most recently the 1991 union of the Amro (Amsterdam-Rotterdam) Bank and ABN (Algemene Bank NL).

It was a banker from one of the forerunners of Amro bank that dreamed up Royal Dutch/Shell’s hydra-headed structure way back in 1907. When Shell’s Dutch supervisory board sought an adviser on the unwinding of the cumbersome governance model there was only one candidate . . ABN Amro read more

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Financial Times: Lex live: Royal Dutch/Shell

Financial Times: Lex live: Royal Dutch/Shell

Tuesday 28 June 2005

UK budgets under Gordon Brown’s tenure have shown that taxation and simplicity rarely go hand in hand. But the complexities produced by Royal Dutch/Shell’s unification give the chancellor a run for his money.

To avoid Shell shareholders having to pay Dutch withholding tax – and no doubt to appease British and Dutch interests – the company will retain two classes of shares. The A shares, representing Royal Dutch stock, currently trade at a 3.5 per cent discount to the B shares, representing Shell Transport & Trading. Is this discount justified? read more

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Shell Accused of Hanging Shareholders ‘Out to Dry’

The Scotsman: Shell Accused of Hanging Shareholders ‘Out to Dry’

Tuesday 28 June 2005

By David Winning, PA City Staff

Shell shareholders today expressed anger at an £80 million tax bill that will follow the biggest overhaul in the oil giant’s 100 year history.

They accused the board of “hanging them out to dry” by devising a scheme to unify its UK and Dutch assets that leaves many facing large losses from capital gains tax.

Shell Transport, which has its headquarters in London, plans to merge with Netherlands-based Royal Dutch Petroleum next month as it strives to eliminate failings that led to its reserves crisis last year. read more

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Bloomberg: Royal Dutch, Shell Shareholders Vote to Combine (Update3)

Bloomberg: Royal Dutch, Shell Shareholders Vote to Combine (Update3)

Tuesday 28 June 2005

June 28 (Bloomberg) — Royal Dutch/Shell Group shareholders voted to merge its holding companies in the Netherlands and Britain, ending a century-old separation that investors said damaged what was the world’s largest publicly traded oil company.

The votes at Royal Dutch Petroleum Co. near The Hague and Shell Transport & Trading Co. in London today will disband companies that since 1907 had operated as one with separate stock- market listings and boards of directors. Shell’s U.K. shares rose 3.2 percent, the biggest one-day gain since Feb. 1. read more

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THE NEW YORK TIMES: Shareholders Approve Shell Unification

THE NEW YORK TIMES: Shareholders Approve Shell Unification

28 June 2005

By THE ASSOCIATED PRESS

Published: June 28, 2005

THE HAGUE, Netherlands (AP) — Shareholders overwhelmingly approved the unification of the Royal Dutch/Shell Group of Cos. on Tuesday, an attempt by the world’s third-largest oil producer to recover after a scandal over restated reserves.

Some 97.4 percent of shareholders in the Netherlands and 96.38 percent in London voted in favor of ending a century-old dual corporate structure at the Anglo-Dutch company.

”The opportunities for simplification and quicker decision making and clearer accountability are tremendous, and I think it’s going to make a huge difference,” said Malcolm Brinded, Shell’s executive director for exploration and production. read more

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Campaigners vent fury at Shell board: 28 June 2005

Financial Times: Campaigners vent fury at Shell board: 28 June 2005

Human rights campaigners on Tuesday urged Royal Dutch/Shell to improve its environmental policy, seizing the platform of the energy group’s Dutch annual meeting in Scheveningen to accuse it of “polluting communities and destroying lives”.

A string of campaigners expressed fury and frustration at what they claimed was the company’s failure to address the concerns of local communities.

“Our lives are being destroyed,” said one man, referring to oil spills and gas flaring in Africa’s Niger delta. read more

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