London Evening Standard: Market report: Monday close: “Total was keen to take advantage of the strong oil price and the lack of confidence in Shell's management” (ShellNews.net)

Mickey Clark,

16 August 2004

CITY traders were doing their level best to play down talk of a £40bn-plus bid for oil giant Shell, up 8 3/4p at 399 1/4p, from its smaller French rival Total.

Reports at the weekend claimed Total was keen to take advantage of the strong oil price and the lack of confidence in Shell's management after the write-down of about 22% of the group's oil reserves earlier this year.

Shell's management is said to have conceded that the controversy over the write-down had left it vulnerable to takeover.

Bruce Evers at broker Investec Securities said: 'A bid by Total is not impossible but it is highly unlikely with too many regulatory issues to overcome.'

He is urging clients to hold on to their Shell shares. Another broker pointed out that it would have to be classed as a reverse takeover. Meanwhile, the company is continuing to buy back more of its own shares. On Friday, it bought a further 2.2m at 394p.

The rest of the market reversed opening falls in thin trading. Investors appeared to be pinning their hopes on Wall Street this afternoon where prices were expected to start higher. The FTSE 100 index rose 48.70 points to 4350.2.

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