PR giants set to cash in on Shell/BG takeover deal
Brunswick chairman, Sir Alan Parker, and Roland Rudd, the chairman of Finsbury, will be among the financial winners from the £36bn acquisition of BG Group by Royal Dutch Shell.
The deal, which has been criticised for being too expensive and not in the interest of shareholders, could see the PR supremos share fees worth up to £10.7m.
Revealed in documents sent to shareholders, Rudd's Finsbury will receive up to £4.8m for advising Shell and Brunswick, founder by Parker, will receive up to £5.9m BG Group.
Shareholders are expected to approve the takeover, clearing the path for the deal to be formally approved next month. Since the news of the acquisition was announced in April oil prices have fallen from $55 to $33 a barrel with fund manager at Standard Life Investment, David Cumming, voicing concerns that the deal would work with oil belong below $40 a barrel.
"Shell could walk away, they could seek to change terms or shareholders could vote the deal down," he said. However, the deal is expected to win approval because Shell shareholders are also investors in BG and should they walk away that would cause a collapse in BG's share prices.
Sir Martin Sorrell's son, Mark Sorrell, co-head of UK investment banking at Goldman Sachs is also expected to receive a share of the $175m paid to bankers and financial advisers due to its work with BG Group on the deal. Brunswick declined to comment to the press on the fees, with Finsbury saying some of its payment is linked to a "success fee" should the deal go ahead.