MarketWatch: Shell executive, bankers say they’re not aware of any plan for BG bid

By Benoit Faucon
Last Update: 5:20 AM ET Oct 22, 2007

LONDON (MarketWatch) — A Royal Dutch Shell PLC executive and bankers said this week that they had not been made aware of any current interest in BG Group PLC Group PLC undermining speculation that the Anglo-Dutch major wants to buy the U.K. gas producer.

BG shares have risen 7.2% since an Oct. 8 Brazilian press report said Brazil’s state-controlled oil company Petroleo Brasileiro SA or Petrobras, and Shell had held talks to buy the gas company. BG shares closed Friday in London at 879.5 pence, down 1.9%.
Though the report said the discussions had faltered, traders speculated this week that they were ongoing. All three companies have declined to comment.

This week, one Shell executive, who was involved in an attempt to buy BG about four years ago, said he was not aware of any new talks. “We didn’t buy them when they were at GBP2.5 per share, so why would we buy them at GBP8?” he said.

In addition, two bankers who have worked on Shell’s most recent large deals such as its buyout of Shell Canada Ltd.’s minority shareholders said they had not been informed by Shell of any interest in BG. The bankers had proposed BG as a target for Shell, but the company refused to take the matter further last year.

“Interestingly, at $62 billion (market capitalization), BG has been pushed too high now for most single bidders to be even considered viable,” a Citigroup report said Wednesday morning.

(This story was orignially published Friday.)
LONDON (MarketWatch) — A Royal Dutch Shell PLC RDSA executive and bankers said this week that they had not been made aware of any current interest in BG Group PLC BRGYY, undermining speculation that the Anglo-Dutch major wants to buy the U.K. gas producer.
BG shares have risen 7.2% since an Oct. 8 Brazilian press report said Brazil’s state-controlled oil company Petroleo Brasileiro SA PBR, or Petrobras, and Shell had held talks to buy the gas company. BG shares closed Friday in London at 879.5 pence, down 1.9%.

Though the report said the discussions had faltered, traders speculated this week that they were ongoing. All three companies have declined to comment.

This week, one Shell executive, who was involved in an attempt to buy BG about four years ago, said he was not aware of any new talks.

“We didn’t buy them when they were at GBP2.5 per share, so why would we buy them at GBP8?” he said.

In addition, two bankers who have worked on Shell’s most recent large deals such as its buyout of Shell Canada Ltd.’s minority shareholders said they had not been informed by Shell of any interest in BG. The bankers had proposed BG as a target for Shell, but the company refused to take the matter further last year.

“Interestingly, at $62 billion (market capitalization), BG has been pushed too high now for most single bidders to be even considered viable,” a Citigroup report said Wednesday morning.

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