Bloomberg: Total Says Royal Dutch/Shell Takeover Reports Are `Speculation': "Royal Dutch/Shell executives are concerned that the company is vulnerable to a takeover bid” (ShellNews.net)

Aug. 15 (Bloomberg) -- Total SA, Europe's third-largest oil company, dismissed as ``market speculation'' a report that it's preparing a bid to acquire larger rival Royal Dutch/Shell Group.

The Sunday Observer reported that Royal Dutch/Shell executives are concerned that the company is vulnerable to a takeover bid and that the most likely suitor would be Total because of fewer competition conflicts.

``This is a market rumor that's doing the rounds and I've got nothing more to add than that,'' said Mary Dwyer, a spokeswoman for Total in a phone interview. Her comments were echoed by Shell spokeswoman Bianca Ruakere, who said the company doesn't comment on ``market rumors or speculation.''

Royal Dutch/Shell surprised investors in January by saying it had overstated its proven oil and gas reserves for years, leading to four estimate reductions that took the proven reserves to a level 23 percent lower than in 2002.

The admission that it overstated reserves led to three top executives being fired, an investigation by the U.S. Securities and Exchange Commission and investor lawsuits.

Royal Dutch/Shell Group is 60 percent controlled by Royal Dutch Petroleum Co. and the balance is owned by Shell Transport & Trading Co. Plc. Since Jan. 8, the day before disclosing it overestimated reserves, Royal Dutch shares have declined 3 percent and Shell's shares are 2.7 percent lower.

Total shares closed Friday 1.3 euros, or 0.8 percent, lower at 157.2. Shell shares dropped 4.5 pence, or 1.1 percent, in London Friday to 390.5, while Royal Dutch shares shed 39 cents, or 1 percent, to 40.17 euros in Amsterdam.

To contact the reporter on this story:

Simon Packard in Paris  packard@bloomberg.net

To contact the editor responsible for this story:

Dan Stets at  dstets@bloomberg.net

Last Updated: August 15, 2004 07:48 EDT

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