There has been rumours of takeover of BG by Total. Does anyone have any ideas of realistic share price if this were to happen.
In any event, they r expanding in other places and had great results

Thanks
Scot

Questor share tip: Quality assets mean BG Group's future looks bright
BG Group shares have been weak ahead of a mixed quartely report, but Questor says buy.
By Garry White
7:00AM BST 27 Jul 2012
BG Group
£12.46 +26p
Questor says BUY

BG Group

Energy giant BG Group posted a mixed set of numbers yesterday. However, the shares have been extraordinarily weak of late and the recent falls look overdone.

The recent negative sentiment was not sparked by weak energy prices alone, as the decline in BG shares this year has been larger than for companies such as BP and Royal Dutch Shell.

The shares had fallen for the last 5 days in a row, as some investors had been concerned about a potential future funding gap to bring its major projects in Brazil, Tanzania and Australia on stream.

However, these fears are likely to be unfounded if asset disposals go to plan.

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BG plans to sell $5bn (£3.2bn) of assets over two years to help develop its oil and gas discoveries and liquefied natural gas (LNG) projects.

There were two major negatives in yesterday's figures. The numbers were hit by a $1.3bn non-cash writedown on the value of its US shale gas business. Most of the energy majors piled into unconventional gas in the US over the past few years, resulting in a glut of gas that has seen natural gas prices tumble across the Atlantic.

Also, investors were disappointed with production news. BG lowered its year-end, daily-production guidance from 750,000 barrels of oil equivalent (boe) to 720,000. In the second quarter, BG produced 61.3m boe, a 4pc year-on-year increase.

In the three months to June, pre-tax profits were just $609m compared with $2.25bn in the equivalent period of last year. Even with the write-off stripped out, profits fell following a 7pc decline in the oil price. Operating profits in the quarter slid by 8pc to $1.98bn, despite the higher production. This was 6pc below consensus expectations.

However, there were some positives in the figures. Group operating profit from LNG rose 7pc as demand for the fuel in Japan surged, following the closure of its nuclear power operations after the Fukushima reactor disaster. BG delivered 16 cargoes of LNG to the Asian nation in the second quarter compared with seven in the second quarter of last year.

This resulted in BG increasing its operating profit guidance for LNG to the upper end of its previous guidance range of $2.6bn to $2.8bn.

There was also good news on cash. Cash flow from its operations rose 21pc in the quarter to $3.12bn, despite the fall in the oil price.

This is important because it refers to the amount of cash a company generates from revenues, minus costs associated with long-term investment. The indebtedness of the company also fell, with gearing falling to 24.9pc from 26.6pc following a number of disposals.

There was also good news on the dividend, which was increased by 10pc to 11.88 cents. However, the shares are not one to hold for income seekers, as the prospective yield remains just 1.4pc.

Trading on a December 2012 earnings multiple of 13.3 times, falling to 11.5, Questor thinks the fall in its share price is overdone. BG Group is likely to be a long-term winner because of the quality of its assets.

Last tipped as buy on March 15 at £15.26, the rating remains buy.

BG Group fell off a cliff of its own making last month, after warning investors they shouldn't expect any growth next year. For anybody who likes buying good shares on bad news, it looked like the perfect time to pose the question: should I buy BG Group? After dropping 25% to £10, the stock has recovered around 7% to £10.70 at time of writing, so maybe we have already missed the moment. Yet this rebound was largely due to takeover rumours, rather than any fundamental change in the company's fortunes. BG Group is tidying up its balance sheet, completing the sale of its 60% holding in Comgas for around £1 billion, and paying down £600,000 worth of debt. But if you plan to hold for at least five years, it remains a tempting buy