UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Next Thread
Author: eon Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4207  
Subject: A and B shares Date: 08/02/2006 10:21
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi all, just looking to invest in a good solid oil company and am not clear about the difference in the A and B shares.
Today for instance the A shares are currently 1801 down 1.69%
However as comparison B shares are currently 1883 down 0.35%

A shares show a divi of 3.6%, there is no info on the B shares.

I see the message board is under B shares and i do know about the merger.

So which share to buy, and what is the difference above and beyond the A shares being more unloved today?
Print the post Back To Top
Author: GerardHoullier Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2778 of 4207
Subject: Re: A and B shares Date: 08/02/2006 10:26
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I am not too sure about the A and B shares to be perfectly honest as I am relatively new to Shell.

I am currently buying Shell A shares on the AEX, all I can say is that Royal Dutch Shell A shares on on the AEX have traded around 7.5m so far today whereas the B shares have only sold 11,181 so for liquidity reasons I would stick with the A's I guess some others could give better reasosns than this.

Print the post Back To Top
Author: GerardHoullier Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2779 of 4207
Subject: Re: A and B shares Date: 08/02/2006 10:28
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If you are buying Shell please remember that the shares become ex-dividend on February 8, 2006 so expect a small drop on Friday, I am looking at buying in sub 26 euro this week.

Print the post Back To Top
Author: chrishgv Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2780 of 4207
Subject: Re: A and B shares Date: 08/02/2006 10:32
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
If you are buying Shell please remember that the shares become ex-dividend on February 8, 2006 so expect a small drop on Friday, I am looking at buying in sub 26 euro this week.


8th Feb is TODAY, Wednesday, not Friday. And the drop just happened!

Put simply, A shares are for Holland - subject to Dutch withholding tax - and B for Britain - paid from "UK Sourced Income"

hgv


Print the post Back To Top
Author: JakNife Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2781 of 4207
Subject: Re: A and B shares Date: 08/02/2006 11:30
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 24

What is the difference between the two classes of shares in Royal Dutch Shell: RDSA & RDSB?


RDSA and RDSB are essentially identical shares except for a difference in the way that dividends are paid, which causes a tax difference and as a consequence means it would be strange for a UK person to want to buy RDSA instead of RDSB.

Briefly:

The RDSA shares are intended to equate to the old Dutch company shares of Shell Group whereas RDSB are intended to equate to the old UK company shares of Shell Group. The new company is "Royal Dutch Shell plc" which is a UK company that is tax resident in the Netherlands

Dutch tax law imposes a dividend withholding tax of 25% which means that 25% of the cash dividend that the company pays is physically withheld at source by the company and instead paid to the Dutch tax inspector. The UK tax system does not have a dividend withholding tax system whatsoever, our tax credit system is purely a notional tax credit and does not reflect an actual physical withholding of tax.

To "streamline international investment", Shell came up with a clever wheeze called a "Dividend Access Mechanism", which works as follows:

* RDSA shares (the equivalent of the old Dutch shares) will continue to suffer dividend withholding tax at 25%.

* RDSB though (the equivalent of the old UK shares) will not suffer any withholding tax PROVIDED that the company Royal Dutch Shell plc can demonstrate to the Dutch tax inspector that the dividends being paid on the RDSB shares are sourced directly from UK income.

Hence the RDSB shares are slightly better from a UK perspective since there should be no withholding tax on them, this is reflected in the current pricing.

A couple of other points to note:

1. Shell have stated that they will favour buying back RDSA over RDSB, this may make the demand for RDSA slightly stronger.

2. There are differences in the default currency used to pay dividends. With RDSB the assumption is that you'll want the Euro div paid in sterling, whereas with RDSA the assumption is that you'll want the Euro dividend paid in Euros. You can make elections in both cases for a dividend in the alternative currency.

Regards

JakNife



Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: eon Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2782 of 4207
Subject: Re: A and B shares Date: 08/02/2006 14:50
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Very succinct Jaknif, have a rec.
Eon

Print the post Back To Top
Author: chrishgv Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2783 of 4207
Subject: Re: A and B shares Date: 08/02/2006 15:21
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Very succinct Jaknif, have a rec.
Eon



I disagree!

My answer was "succinct"

Jak's is "comprehensive"

-as ever

hgv


Print the post Back To Top
Author: jimmy129 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2784 of 4207
Subject: Re: A and B shares Date: 08/02/2006 17:32
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
how much is the divi?

Print the post Back To Top
Author: StephenBrook Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2785 of 4207
Subject: Re: A and B shares Date: 08/02/2006 22:42
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
Dunno. Why don't you visit http://investor.shell.com and find out?

Print the post Back To Top
Author: GerardHoullier Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2786 of 4207
Subject: Re: A and B shares Date: 09/02/2006 08:51
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Dunno. Why don't you visit http://investor.shell.com and find out?

There is no need to be an arse about it, here you go Jimmy129 this link tells you more about the Divi,

http://boards.fool.co.uk/Message.asp?mid=9803598

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Next Thread