Deals
Shell’s $70 Billion BG Deal Meets Shareholder Skepticism
M&A Activity Shows Strategic Market Moves: Profusek
This article is for subscribers only.
The biggest deal in Royal Dutch Shell Plc’s history failed to win over many investors who worry the $70 billion price tag is too high and could imperil their dividend.
While the cash-and-shares purchase of BG Group Plc will make Europe’s largest oil company the preeminent player in global natural gas and add enormous fields in Brazil, it’s not expected to boost earnings per share until 2017 and relies on a quick rebound in crude to about $90 a barrel to ensure success.