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Accountancy Age: Shell in court over improper behaviour claims: "Royal Dutch Shell's plans to complete its corporate restructuring have been thrown into jeopardy...": Monday 12 December 2005

Kevin Reed, Accountancy Age 12 Dec 2005

Hedge Fund slams Royal dutch Shell's share offer to minority shareholders, alleging improper behaviour

Royal Dutch Shell's plans to complete its corporate restructuring have been thrown into jeopardy by a London-based hedge fund.

Trafalgar Asset Managers is set to apply for a court injunction in the Netherlands to stop the company from buying out its last few minority shareholders from the Dutch half of the oil giant, Royal Dutch.

The Sunday Times reports that Trafalgar has claimed that during the merger of the two businesses, which followed investor pressure for change after its oil reserves accounting scandal, the oil giant behaved 'improperly'.

Large investors in the two companies were offered shares in the new UK-listed group, but minority shareholders were just offered cash.

Trafalgar argues that shareholders have not been offered enough for their holdings, at only 26.1 euros per share (17.58).

In court tomorrow, the hedge fund will also claim that the Shell board is not independent, as the same directors have sat on the boards of both companies that have been merged.

Shell told the Sunday Times that it would not comment ahead of Tuesday's hearing.

 
 
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