Royal Dutch Shell has moved higher following reports that Qatar's sovereign wealth fund wants to take a stake in the business.
The Anglo-Dutch group's A shares are up 27.5p at £20.78, a rise of 1.3%, as the Middle East Economic Survey said Qatar was in advanced talks to buy a 3% to 5% shareholding, worth up to £6.5bn. The report also said the Qatari fund wanted to take a stake in Italy's ENI. Shell has told Reuters it has no comment on the story.
Earlier JP Morgan Cazenove analysts raised their price target on Shell from £24 to £25 but with a neutral rating:
Shell does not look expensive and offers attractive exposure to LNG. However, without more portfolio surgery, it could once again be upset by weak refining margins.
Updated (11.20)
Reuters is now reporting that a Shell spokeswoman has confirmed Qatar has bought a stake, although the company would not reveal how much. In an emailed statement Shell said:
We are delighted to welcome the Qatar Investment Authority as a long term and major shareholder in Shell, and particularly given our excellent strategic relationship with the Qatari state.
