EUROPE

BG takeover speculation

SPECULATION that BG Group may become a takeover target following the shock resignation of CEO Chr...

BG takeover speculation

According to Bloomberg, RBC Capital Markets analyst Peter Hutton said that majors ExxonMobil, Royal Dutch Shell and Chevron had the capacity to bid for BG after Finlayson resigned.

"With around $US200 billion in treasury shares, Exxon Mobil is mechanically better placed for a cash and stock offer for BG," Hutton reportedly wrote in a client note.

"Without a management track record and undergoing fundamental review of its plans, it is now more plausible to see BG as a potential acquisition target."

BG said that Finlayson, who resigned after just 15 months in the top job, left for personal reasons.

BG shares climbed as much as 3.2% yesterday, hitting the highest intraday price since January 24.

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