Shell in fight for Woodside

Woodside Petroleum, fighting a $US3.4 billion ($8.38 billion) hostile takeover by Royal Dutch/Shell Group, said it was holding talks with rivals BHP and Santos about potential alternatives to Shell's offer.

Shell wants control of Perth-based Woodside, Australia's second-largest oil company, to increase its gas reserves in Asia, where Shell estimates demand will rise 60 per cent over the next decade.

Woodside directors say the offer is too low.

The Australian Government is under pressure to reject the Shell bid because of concern the offer is against the public interest and that Shell will favour development of projects outside Australia.