Anger at Enterprise bid rebuff

ENTERPRISE Oil came under fire from some of its leading shareholders over its refusal to pursue takeover talks with its potential predator. Several institutions are known to be angry about the speed with which Enterprise last month dismissed a takeover approach from an undisclosed suitor, widely thought to be Italy's ENI.

They want Enterprise to reveal what price was being mooted, giving them the chance to make their decision on whether to accept. Enterprise's open share register includes Fidelity, Deutsche Asset Management and Schroder.

Enterprise shares leapt 21% on Tuesday to 605p after it said it had rejected an 'unsolicited approach'. The stock slipped only 16p today, suggesting many investors were confident either ENI would turn hostile or another bidder would emerge. US group Amerada Hess is also viewed as a potential bidder, as is Shell, which has made no secret of its appetite for an acquisition.

Analysts said the proposed bid was believed to have been pitched at between 650p and 700p a share, valuing Enterprise at up to £3.4bn. 'The shares were at 425p just before Christmas so 650p is a very tempting premium,' said Commerzbank oil analyst Steve Turner.