DAILY MAIL (UK): CITY & FINANCE: Total takeover gossip pumps up Shell price: ALMOST 100m shares in oil giant Shell were traded as a slick takeover rumour made dealers sit up and take notice. The close was 10%p higher at a year's peak of 456p amid growing speculation that Total of France, the world's fourth largest oil and gas company, is lining up a cash offer.”: “It is not the first time that Shell and Total have been mentioned in the same breath, but informed sources yesterday suggested that something really could be afoot this time…” Posted 23 Jan 05
THIS ARTICLE IS AN EXTRACT FROM “MARKET REPORT” by Geoff Foster published by the Daily Mail on Saturday 22 January 2004
ALMOST 100m shares in oil giant Shell were traded as a slick takeover rumour made dealers sit up and take notice. The close was 10%p higher at a year's peak of 456p amid growing speculation that Total of France, the world's fourth largest oil and gas company, is lining up a cash offer.
It is not the first time that Shell and Total have been mentioned in the same breath, but informed sources yesterday suggested that something really could be afoot this time. Shell has rallied from a depressed February low of 348p on bid hopes as well as rising oil prices.
Last year's admission that its oil and gas reserves were overstated by 23pc in filings to the US Securities & Exchange Commission created turmoil at Shell and left the group vulnerable to a takeover.
In what was deemed by many to be a defensive move, in November it announced plans to merge its holding companies, Royal Dutch Petroleum and Shell Transport & Trading in the UK.
Total is believed to be keeping a close eye on the situation but will not show its hand before February 3 when Shell announces fourth-quarter and annual results. It will give an update on proven reserves and the timetable of the Royal Dutch Petroleum/Shell merger.
City Editor: Alex Brummer
Telephone: 020 7938 6000