Shell bids for Enterprise Oil ~ job fears follow.

Shell bids £4.3bn for Enterprise Oil and the bid wins the backing of the board at Enterprise, the UK's biggest independent oil explorer.

Shell estimates the merger with Enterprise would shed $300m in costs through cutting duplicated activities. The level of cost cuts, mostly set to come from "operational efficiencies", will raise fears of job losses, although Shell chairman Phil Watts said he only expected 100-150 Enterprise jobs to go. It is not known how many of these will be in Aberdeen.

Enterprise chairman Sir Graham Hearne said the takeover held benefits for remaining staff. "For Enterprise employees, there is the opportunity to develop their careers as part of the Shell Group, " Sir Graham said.

The offer intensifies Shell's acquisition spree, which last week saw the oil major agree to pay $1.8bn (£1.3bn) for Pennzoil-Quaker State, the biggest US motor oil company. Shell had previously remained isolated during the oil industry's period of intense consolidation in 1998 and 1999 which saw firms such as BP, Total, Elf, Exxon and Mobil in full-scale mergers.

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