Standard Life Investments to vote both ways on Shell takeover of BG
A top City investor is voting in favour of Royal Dutch Shell’s £36bn takeover of BG group, despite publicly criticising the deal for months.
Standard life investments will use its 1.3 per cent stake in BG to support the takeover at a shareholder meeting at the end of this month.
The move, first reported by Sky News, comes despite Standard Life Investments fund manager David Cumming arguing that Shell – which Standard Life Investments also owns a chunk of – should renegotiate.
"We have concluded that the proposed terms of the acquisition of BG are value-destructive for Shell shareholders,” Cumming said on Friday.
"This view is based on the downside risks to Shell's oil price assumptions plus the tax and operational risks surrounding BG's Brazilian asset base. Consequently we shall vote against the deal."
However, Standard Life Investments will also be voting against the deal using the Shell shares it owns.
Shell needs the approval of over 50 per cent of its shareholders to go ahead with the deal, compared with 75 per cent at BG.
Standard Life Investments declined to comment.