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Bg group share chat (bg)

Discussion in 'General Share Chat' started by Inspiration, Jul 8, 2015.

  1. Steamy

    Steamy Co-Founder of BlueShare Staff Member Moderator

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  2. Inspiration

    Inspiration Moderator Moderator

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    Edit.
     
    Last edited: Jul 8, 2015
  3. Inspiration

    Inspiration Moderator Moderator

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    From Commonstock on LSE, 2nd June:

    "IF all the conditions are met and the deal is going to go ahead, the companies will make an announcement of when the transaction will complete and they will probably give a date (which will be "ex" something or other - like an "ex-dividend" date) and you would need to buy shares on or before that date to be part of the deal and receive your cash and RDSB shares.

    So in short, you can still buy shares now and they will be part of the deal for which you'd get the cash and RDSB shares IF the deal goes ahead.

    At the moment there is an interesting potential opportunity - if you want to buy RDSB shares, you can instead buy about 2.25 x more BG shares and if the deal goes ahead and the share prices of the two companies remain the same, with the cash return, you'd have picked up the RDSB shares at an approximate 15% discount and you'd be getting a 7%+ yield. This is known as merger arbitrage - the 15% discount is there because there is still some uncertainty about the deal going ahead.

    IF and when the conditions for the deal are met, the price of BG and RDSB should narrow.

    This is just my opinion and each should do their own research, but I believe the deal will go ahead and I think Shell will be a better investment for it. I have already picked up some BG shares specifically to acquire further RDSB shares and I am thinking of buying more.

    BG and Shell have said they expect the deal to complete in Q1 2016, if all the conditions are met. You might want to set an RNS email alert which you can do on the London Stock Exchange[​IMG] website (I suggest you do RDSB rather than BG as BG has got loads of irrelevant Form 8.3 RNS things going through every day at the moment)."
     
  4. Inspiration

    Inspiration Moderator Moderator

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    British Gas: CMA overcharging analysis 'not credible'
    Centrica chief executive Iain Conn says CMA claim that households have been paying £1.2bn a year too much for energy "doesn't stack up"



    [​IMG]
    By Emily Gosden, Energy Editor

    7:25PM BST 07 Jul 2015

    [​IMG]9 Comments


    The Competition and Markets Authority’s analysis that the Big Six suppliers have charged households £50 a year too much for their energy is “not credible”, British Gas owner Centrica has claimed.

    Iain Conn, Centrica chief executive, on Tuesday broadly welcomed the CMA report into the energy sector, but he said he was “concerned” about theCMA’s claims that household customers had been paying £1.2bn a year and SME customers £500m a year more than they would have been “had competition functioned more effectively”.

    Mr Conn said: “If you take 2012 and 2013 for sure, the total amount of profit all the big energy suppliers made added together was £1.6bn. So the implication the CMA seem to be saying in this piece of economic theory is that we should all be happy doing this for nothing, which I just don’t think is credible.

    “That’s the only thing I want to challenge. It doesn’t stack up... £50 a family is the total profit we make.”

    He acknowledged that British Gas could however be more cost efficient in a more competitive market.

    Mr Conn said the CMA’s proposed temporary price caps on default tariffswere a “perfectly feasible idea” although he had questions about how it would work.

    Analysts at Deutsche Bank said the plan was “likely to be seen as negative by investors” while UBS said the proposal was “potentially harmful to gas retailers”.

    Mr Conn said: “Depending where it is set and how it is set, it could have an impact on our margins for our standard variable customers, but let’s wait and see."

    He said other proposals put forward by the CMA, such as lifting a cap on the number of tariffs they could offer, may be “offsetting factors that mean it does not materially impact the profitability”.

    Other suppliers also broadly welcomed the CMA's report. RWE and ScottishPower both said the CMA report served to “dispel myths” about the energy market.
     
  5. Inspiration

    Inspiration Moderator Moderator

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    This share has gone fairly quiet recently and there's very little on LSE about it, with only one poster writing every few days.

    The Shell merger is likely to go ahead in early 2016 and there was an £18m purchase after hours today. However, with the oil sector out of favour recently, it seems to have attracted little interest and Shell has announced a major cost review.
     
    Apache Reign likes this.
  6. Apache Reign

    Apache Reign Member

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    Good morning.
    I've just heard on" wake-up to money" on radio 5 live about the shell /bg merger it might be worth listening to the pod cast.

    Thanks for your post.

    Apache
     
    Inspiration likes this.
  7. knotty

    knotty A Legendary Member

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    Just received a mailing from HL with terms of the offer has potential of nearly 47% return, can this be right.
    3.38 cash plus .4447 of shell b share
     
  8. 9crompton

    9crompton A Legendary Member

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    I have received a corporate note from Halifax regarding the offer, I was told that you have 4 options, op 1 as above by knotty op 2 all a shares op 3 all b shares and op 4 all cash. What to do what to do
     
  9. knotty

    knotty A Legendary Member

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    Hi Cromp do you see the potential upside as approx 47% or have I got it wrong ? I appreciate the risk is the deal may not ro through.
     
  10. 9crompton

    9crompton A Legendary Member

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    deal very close ex date is Feb 9th Feb 12th is record date, potential upside still approx. 47% I am going to elect the B shares and hang onto them for the dividends 7% yield hope this helps
     
  11. Starburst

    Starburst A Legendary Member

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    7% yield at the moment. The huge drop in oil price means Shell might have to cut divi. I think the city thinks the divi will be cut and that is why RDSB sp has plunmeted recently.
     
    knotty likes this.
  12. 9crompton

    9crompton A Legendary Member

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    wasn't there a guarantee in the shell rns offer that they would honour the dividends for 2015? payable in 2016
     
  13. Starburst

    Starburst A Legendary Member

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    Yes, I think so, divi is paid quarterly. The problem as I see it is if oil price stays low or goes even lower Shell might have to cut future divi's as from next year and sp will drop further. The current divi on HL is 8.5% which is really high and so the question has to be why isn't everybody loading up. I think there might be some rough times ahead although I can't see Shell going bust, they are a very well run company. Before the last financial crash UK banks accounted for a large portion of UK pension funds income and at the moment Shell are in a similar position in Holland, if they cut divi to far there will be consequences. Will be interesting to see how it goes until oil price starts rising. I ahe both RDSB and a few BG and will take the option of RDSB shares and cashback.
     
    9crompton and knotty like this.

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