Join our community of smart investors

Fund houses poised to greenlight Shell/ BG takeover

With one week to go until the vote, fund houses holding both Shell and BG are backing the deal

In less than a week Royal Dutch Shell (RDSA) and BG group (BG) shareholders will vote on their controversial merger and despite the plummeting oil price fund houses and insurers including Kames, Rathbone, and several individual managers from Henderson and AXA are poised to give it the green light.

A raft of fund houses have revealed their hand and come out in favour of the deal, defying critics who argue that the fall in the oil price has made it unworkable for Shell. Kames is understood to be backing the deal with its Shell and BG shares and is understood to be encouraging all its fund managers to vote in line with the house view – contrary to some fund houses which allow the managers of listed trusts to back their clients in company votes rather than toeing the party line.

Rathbone chief investment officer Julian Chillingworth said the fund house would be voting for the deal on behalf of both Shell and BG despite the recent oil price slide. He said: “Our house view is that on balance this deal is good for Shell in the medium term and that it should go ahead,” adding “these assets do not come around too often”.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in