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Daily Telegraph: Brokers’ say: *Royal Dutch Shell most likely bidder for BG

(Filed: 28/10/2006)

BG Group

Buy at 686p (this week’s price 702p) recommends Cazenove.

Following highly leveraged bids for Western Gas Resources and Kerr McGee, along with stake building in Spanish oil group Repsol, Cazenove has reviewed the potential for a bid for BG Group.

In conclusion, Cazenove believes that even a bid recommended by the board could come in at around the 900p per share mark.

Furthermore, Cazenove believes that any one of BP, Royal Dutch Shell or Exxon Mobil would be capable of making such a bid while still leaving its finances comfortable. Cazenove favours Royal Dutch Shell, given its greatest need and biggest operational overlap with BG of the three possible bidders.
*Headline comment added by ShellNews.net

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