BG Group considered a bid target following CEO resignation
BG Group’s announcement yesterday, 28 April, that the chief executive Chris Finlayson had resigned has left the FTSE-100 energy company vulnerable to a takeover bid, the Financial Times reported. The newspaper quoted a top-10 shareholder, who said Finlayson’s departure will encourage a predator.
BG Group said Finlayson had stepped down for personal reasons. Chairman Andrew Gould will take over as interim CEO while the company seeks a replacement, the item said.
The article went on to quote a fund manager at BG shareholder Investec Asset Management, Charles Whall, who said BG’s Brazilian and Tanzanian assets might attract listed Irving, Texas-based rival ExxonMobil. Whall argued that any bidder might be emboldened by the lower expectations of BG shareholders, and that those shareholders might now accept an offer of 1500p per share or lower.
ExxonMobil refused to comment, the item said.
A Daily Telegraph report quoted Gould, who said the company would not change its strategy. However, Gould added that BG needs to accelerate value creation by measures such as “farming down” shareholdings, joint ventures or asset disposals.
BG Group’s share price closed 1p up at 1146p in London yesterday, giving the company a market capitalisation of GBP 39.07bn (EUR 47.38bn).
Source Financial Times, Daily Telegraph