BG chief welcomes $70 billion Shell offer with 'mixed emotions'
By Karolin Schaps
LONDON (Reuters) - BG BG.L Chief Executive Helge Lund on Tuesday welcomed with "mixed emotions" Royal Dutch Shell's RDSa.L $70 billion takeover bid, which came only two months after he took office.
Speaking at BG's annual general meeting in Reading, England, the former Statoil (STL.OL: Quote) boss said there is still much to do before the transaction can complete but that Shell's bid, at a 50 percent premium to BG's share price on April 7, maximizes 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."
Lund took office on Feb. 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.
Lund is not expected to remain at BG once the takeover completes, but his total pay could top 32 million pounds ($47.8 million) 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 18 percent of them rejecting the company's remuneration report at Tuesday's meeting.
"This really represents an outrageous sum in the current climate," shareholder Mark Bentley said. Continued...