Tuesday 25 October 2016

BG boss welcomes $70bn takeover with 'mixed emotions'

Karolin Schaps

Published 06/05/2015 | 02:30

Shell: BG takeover bid
Shell: BG takeover bid

BG chief executive Helge Lund yesterday welcomed with "mixed emotions" Royal Dutch Shell's $70bn (€62.5m) takeover bid, which came only two months after he took office at the company.

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Speaking at BG's annual general meeting in Reading, England, the former Statoil boss said there is still much to do before the transaction can complete but that Shell's bid, at a 50 per cent premium to BG's share price on April 7, maximises BG's value while removing potential risks.

"This is a strong deal for our shareholders," he said.

"That said, you will understand that, from a leadership perspective, I do have slightly mixed emotions as I was looking forward to taking BG forward and a takeover was certainly not in my mind when I joined the company."

Mr Lund took office on February 9, nearly a month earlier than initially planned, with a mandate to turn BG around after a string of profit warnings and delays on major projects.

Mr Lund is not expected to remain at BG once the takeover is completed, but his total pay could top £32m (€43.4m) if the deal goes ahead, a Reuters analysis of corporate filings showed last month.

BG shareholders showed their discontent about the prospect of such a high payout, with 18pc of them rejecting the company's remuneration report at yesterday's meeting.

"This really represents an outrageous sum in the current climate," shareholder Mark Bentley said.

He demanded an apology from BG's remuneration committee, headed by former Oxford University vice-chancellor John Hood.

Nearly 14pc of shareholders also voted against Hood's re-election.

Irish Independent

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