Shell is reportedly considering launching a takeover bid for rival BP as its share price continues to struggle.
According to initial reports by Bloomberg, Shell, which is Britain's third biggest listed company, is in dialog with advisors about a potential takeover bid.
Shell is closely monitoring BP's share price - which had fallen more than 19% in the last month to around 350p per share before markets opened this morning - and waiting to see if the oil price also continues to fall and put more pressure on BP.
The Times reports a spokesman for Shell said: “As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification.”
Wael Sawan, Shell's chief executive, has publicly played down the prospect of any takeover activity.
BP - which has seen its share price recover slightly since markets opened this morning to around 359.5p per share - declined to comment when approached by The Times.