U.K. Stocks Erase Earlier Gains; BG Group Rallies on Shell DealInyoung Hwang
Royal Dutch Shell Plc led U.K. stocks lower, erasing earlier gains, after a report showed U.S. oil inventories grew more than expected last week.
The FTSE 100 Index lost 0.4 percent to 6,937.41 at the close in London, wiping out an earlier rally of as much as 0.7 percent fueled by Shell’s $70 billion takeover of BG Group Plc. The FTSE All-Share Index fell 0.2 percent, while Ireland’s ISEQ Index increased 0.1 percent.
Shell lost 5.3 percent, the steepest decline since 2009. Homebuilders Bellway Plc and Berkeley Group Holdings Plc retreated after Labour Party leader Ed Miliband vowed to close a non-domicile tax loophole used by the wealthy.
Shares of BG rallied 27 percent following the announcement of Shell’s purchase, which is oil and gas industry’s biggest deal in at least a decade.
Sky Plc advanced 1.6 percent after Reuters said Vivendi SA is looking to acquire the U.K. pay-TV provider. Sky denied the report. Experian Plc added 2.7 percent after Credit Suisse Group AG boosted its rating on the credit-reporting firm to the equivalent of a buy.