Shell in Early Talks to Acquire Rival BP
8 replies (most recent on top)
YL has no vision for the company beyond the cuts he’s done. Buying bp is a convenient way to distract everyone from focusing on his lack of strategy.
That is the main reason why he wants to do it, but it would be good for the company in the long run, so he should get on with it.
Welp 6 month ban unless another bidder comes along … let’s see how this plays out
https://uk.finance.yahoo.com/news/shell-says-not-considering-buying-063158443.html
When US companies begin merger talks people think it is a great idea and both share prices rise because it is a company buying a great company.
Shell leaks talk of buying BP and it is so terrible that Shell share prices plummet. The same held true when BG was purchased, the Shell shares fell.
Shell will go ahead and buy a struggling company to try to make money via "synergies". VS. US majors buy good companies to make money with their great assets.
Been talked about for decades. Will happen now. Why? Both are utterly fecked companies and may as well do it together. Shell paid its dowry to the UK.
@as
Remember they buy back 7% of the company for 4 years in a row and increase the dividend by only 4%. Poof! hide that the company is less profitable, and give YL a bonus.
This time it’s real…Wael wants to leave a legacy
The Shell stock price originally fell 4% on the announcement. Which means that everyone agrees that this is S-T-U-P-I-D. (Maybe even so bad to be S-T-O-O-P-I-D) So, that means that there is a high likelihood that Shell leaders will do it.
Add a nearly zero profit company to one making half the percentage profit of it's peers, what do you expect?
To pay for the loan you'd have to get 5 billion in "synergies". Exxon never even got that buying Mobil...come-on, do you think these jokers can really do that? The hubris is incredible.
Seriously, if they put $80 billion into ExxonMobil stock they'd get $3.7 billion in dividends, and unlike Shel or BP stock XOM stock goes up in value. This is just stupid.
Reuters: “The latest in a series of rebuttals by Shell follows recent repeated assertions by CEO Wael Sawan that Shell had a very high bar for big acquisitions and buying back shares was a better allocation of money than the possibility of buying BP.”
Like friends and family pushing a couple to tie the knot, the benefits of a marriage is touted by everyone but the bride and groom. Rumors for decades but still no ring.