ANGLO-DUTCH oil firm Shell shocked the City with a surprise move for the UK's biggest independent operator, Enterprise Oil.

Italian rival Eni had been widely linked with the London-based exploration and production business.

However, Shell said yesterday that Enterprise's board had accepted its 725p per share offer, which values the group at £3.5bn. It is also taking on debts of £800m. Shell's deal, which will increase its presence in the North Sea, marks a 15 per cent premium to the closing price of Enterprise's shares before the Easter break. If no counter-bid is forthcoming, the deal will need approval from shareholders and the regulatory authorities before it can be completed.

Shell's production will increase by six per cent if the deal goes through, with a 30 per cent rise coming in the North Sea and a 50 per cent jump in Norway.

Jobs at Enterprise are set to go if Shell implements plans to combine certain parts of the two businesses.

M&S RESIGNATION? Speculation was mounting last night that Luc Vandevelde, the Belgian boss of Marks & Spencer, was poised to step down as chief executive. Press reports claim Mr Vandevelde, who is also chairman, is to quit after nearly 18 months in the role. It is thought he will be replaced by Roger Holmes, the managing director of UK retailing. Mr Vandevelde will then continue with M&S as chairman. A spokeswoman said Mr Vandevelde did intend to split the roles, but refused to comment on the timing of such a move or who would be his successor, when that happened. Mr Vandevelde joined M&S as chairman two years ago, charged with turning round the retailer's fortunes after a sharp slump in sales and profits.

TELEWEST SELL-OFF: Cable operator Telewest Communications is to sell its stake in holiday firm TV Travel Group in a £27m deal. Telewest, which supplies services to thousands of North-East homes, has agreed to sell its 37 per cent stake in the Bromley-based travel agent, which owns the TV Travelshop television channel, to US media group USA Networks. Debt-laden Telewest, which supplies about 1.7 million homes with telephone, television and Internet services, will receive £27.6m under the cash deal.