** Multiple options still available to play proposedtakeover of BG by Shell
** BG shares yet to close the gap to the implied price asper deal terms
** Shell's offer of 0.4454 shares for every 1 BG share plus383p cash valued BG shares at 1350p, a premium of 52 pct to the90 day VWAP as at Apr. 7
** Closes BG shares have come is the Apr 8 intra-day high of1301p. Currently trading c.9.5 pct below implied deal price.Chart: http://link.reuters.com/paq54w
** Flow since deal announcement dominated by institutionalrather than merger-arb funds, according to an event-drivenspecialist at a leading IB
** Size of the deal cited as preventing merger-arbs fromclosing gap
** Time frame also a possible reason for spread (expected toclose early-2016), UBS cites profit taking from shareholders onApr. 8 but does not expect competition issues to prevent dealoccurring
** Trader suggests long BG (unhedged or as a pair tradeagainst Stoxx 600 Oil and Gas index if an oil bear) as acheap way into Shell dividend yield (at 6.1 pct among highest inEurope) (RM: alasdair.pal.thomsonreuters.com@reuters.net)
