Oil giants target Enron

SEVERAL major oil companies are believed to be considering a takeover of fallen American giant Enron, with Anglo-Dutch giant Shell reported to be in the hunt.

Once a world-beater in power generation, Enron's shares have fallen 70% over the past month. US regulators are investigating alleged financial irregularities at the company. Enron's energy trading business, which turns over up to £7bn daily, is the jewel in the crown.

Insiders believe Shell might also examine Enron's European wind farm projects. Shell has been conscious of its environmental image after clashing with campaigners over the Brent Spar platform in the 1990s.

Revenues at Shell and other major oil companies are likely to fall dramatically if the price of crude remains below $20 a barrel. Oil prices have fallen by 25% over the past month, with the stricken US economy requiring less power.