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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