Shell rules out bid for BP for at least six months

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Shell has insisted it has no intention of making an offer to buy BP, stamping out speculation that it was in early-stage takeover talks.
The oil giant told investors on Thursday morning that 'it has not made an approach' for its London-listed rival, adding that 'no talks have taken place'.
The announcement means that Shell will not be able to make a formal takeover approach for BP for six months, under City rules.
A Shell spokesman said: 'In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.'
The announcement was designed to draw a line under months of rumours that Shell was plotting a £200bn mega-merger with BP, which has increasingly become a target for rivals after its ill-fated shift to green energy.
BP shares spiked nearly 10pc in New York after the Wall Street Journal first reported on Wednesday that takeover talks had taken place between company representatives.
However, they later finished trading just 2pc up after Shell issued a swift denial. BP shares were up 0.9pc in early trading in London on Monday.
It comes as BP's defences appear increasingly vulnerable, particularly as chairman Helge Lund prepares to leave next year under pressure from shareholders.
Elliott, the hedge fund, is a major investor in BP and has been pushing the group to improve its performance.
The United Arab Emirates' state-owned oil company Adnoc reportedly examined a takeover of BP last year and has more recently been assessing a bid for assets, opening the door to a possible break-up of BP.
Previous reports have also claimed that Shell was examining a potential takeover.
An investor who owns shares in both BP and Shell said they would back a merger because it would create cost reductions for both groups.
However, they said Shell would have to pay a premium of at least 30pc – implying a takeover price of about 480p per share, or £75bn – to win shareholder support.
BP, led by Murray Auchincloss, is currently valued at £58bn. Shell is the larger of the two with a market cap of £152bn.
'I don't think this has come as a surprise. The genie is out of the bottle now on BP,' the investor said. 'BP is an attractive asset for Shell because there's a lot of synergies.
'The market didn't expect Shell to do it now because they still have cost-cutting plans, but they're getting to the end of those. BP has been weak and with a low market cap, so there's quite a lot of synergies.'
They added that another possible suitor for BP, American giant Chevron, was effectively ruled out of bidding for now because of litigation in the US about its takeover of Hess.
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