8th Jan 2016 10:53
LONDON (Alliance News) - Royal Dutch Shell investors are poised to vote in favour of the company's mega-merger with BG Group later this month after a key proxy advisory body decided to advise shareholders to support the deal, the Financial Times said late Thursday.
Institutional Shareholder Services is expected to recommend that investors support the deal, the FT reported, citing people familiar with the situation and adding that ISS has declined to comment.
ISS claims to be the world's leading provider of corporate governance and socially responsible investment solutions for asset owners, asset managers, hedge funds, and asset service providers, with clients turning to ISS for advice and research prior to voting.
Shell is trying to alleviate concerns about the value and viability of the deal at current oil prices, which touched an 11-and-a-half year low on Thursday before recovering slightly to USD34 per barrel on Friday morning. When the deal was struck, Shell was envisioning a long term oil price of at least USD70 a barrel, according to the FT, but the deal has also been tested at USD50 and USD60 per barrel.
The majority of Shell shareholders need to approve the deal at the meeting to be held on January 27, whilst over 75% of BG shareholders will need to support the deal when they vote on the following day.
The FT said two "sizeable" Shell shareholders have threatened to vote against the deal, but also said a "top 10 shareholder" in both Shell and BG Group has shown support, and suggests the deal will be approved.
http://www.ft.com/cms/s/0/e1fb4b14-b526-11e5-b147-e5e5bba42e51.html#axzz3weDS3R5C
Shell 'A' shares were trading down 3.0% to 1,411.99 pence on Friday morning, whilst BG shares were up 1.9% to 954.60p.
By Joshua Warner; [email protected]; @JoshAlliance
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