Investment manager

Abdrn’s investment manager says he would ‘probably’ be against Shell break-up

A Shell logo is visible at a gas station. REUTERS / Marcos Brindicci

LONDON, October 28 (Reuters) – Abdrn investment manager Iain Pyle said on Thursday he would “likely” oppose hedge fund Third Point’s call to dismantle Royal Dutch Shell (RDSa.L) .

Pyle, whose company is one of Shell’s top 10 investors according to data from Refinitiv, said that while he could understand Third Point’s logic in seeking to unleash value in the business, do so in practice would be difficult.

“I would probably be against it,” Pyle said. “If it was easy to do, or even possible, then I would be more interested. Don’t get me wrong, I really see the logic and the appeal of what Third Point is suggesting because we have to see this hidden value crystallize into somehow.”

The business split would also likely affect Shell’s ability to provide the full range of services to businesses in other sectors as they transition to a low-carbon economy, he added.

“There are few companies where I imagine the divisions are as nested and nested as they are at Shell, because they are located along a value chain and are vertically integrated, and it is difficult to withdraw them, ”he said. .

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Reporting by Simon Jessop; edited by Rachel Armstrong

Our Standards: Thomson Reuters Trust Principles.


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