Shell PLC (LSE: SHEL, NYSE: SHEL) has firmly rejected claims from a Wall Street Journal report suggesting it has held talks about a potential takeover of BP PLC (LSE: BP).
Responding to the report, which stated that “early stage talks” had taken place, the FTSE 100 and NYSE-listed energy giant said it has “not been actively considering making an offer for BP.”
It says:
In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.
Under the UK Takeover Code, Shell is now restricted from making a bid for BP for six months—unless one of several exceptions applies. These include obtaining BP’s board approval, a third-party making an offer for BP, BP requesting a waiver of the rule, or a material change in circumstances.
Shell explains:
This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result Shell will be bound by the restrictions set out in Rule 2.8 of the Code.
Last night, the Wall Street Journal reported that Shell and BP had engaged in “early-stage talks” over a potential £60 billion takeover—an historic deal that would create one of the world’s largest oil and gas giants.
BP has been the focus of takeover speculation amid investor doubts over its turnaround strategy, which has seen its market value decline over the past year.
