3 Things to Loathe About BG Group plc (BG)

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Brazil is the biggie. While BG Group plc (LON:BG) hasn’t put all its eggs in the Brazilian basket, there are certainly enough in there to raise BG’s risk profile to a higher level than in the past. Finlayson acknowledges the risk but says: If you are going to have risk concentration, I would rather have it in the best discovery in decades, where we have the largest [international oil company] position.”

For me, BG has sound credentials as an asset play in its own right, with the added potential of a bid to out the value. The company has been the subject of takeover speculation on and off for years, the most recent chatter being of an £80 billion break-up bid. I wouldn’t take speculation at such an inflated price seriously, but I can understand how it arises when BG Group plc (LON:BG)’s current value at 1,191 pence a share is 30% below some analysts’ calculations of the true value of the company’s assets.

The article 3 Things to Loathe About BG Group originally appeared on Fool.com.

G.A. Chester has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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