Analysts dismiss Shell bid for BG Matt Chambers From: The Australian August 23, 2010
BRITISH gas giant BG Group is in a rare space among Gladstone's coal seam gas export hopefuls. It has enough gas and an LNG plan far enough advanced to not need to talk to competitors Shell, Santos and Origin about consolidation.
This puts BG in a position to be able to drive a very hard bargain with any of the less-advanced players who might need a deal.
That BG are driving a bargain so hard Shell could be moved to bid for BG, which is worth about $64 billion, is clearly a stretch. But if Shell did successfully bid for BG, it would put them in a lot better position in Queensland.
Rumours were flying around London on Friday that Shell was about to make a bid for BG. While analysts in the City gave the rumour little credence, some punters did, sending BG shares up 6 per cent their biggest one-day jump in 17 months.
ESG Price at posting:
85.0¢ Sentiment: Hold Disclosure: Held
