Shell (SHEL) has been discussing with advisers to assess a potential acquisition of BP (BP) in recent weeks, Bloomberg reported Sunday, citing unnamed sources familiar with the matter.

A final decision on the takeover bid would likely depend on the further decline of BP's stock prices, the sources the news outlet.

Other alternatives for Shell include waiting for BP to reach out and letting another prospective acquirer make the first move, according to the report. Shell may also instead focus on share buybacks and bolt-on acquisitions, the sources said.

Other large energy companies have also been considering a takeover bid, the sources told Bloomberg.

In an earlier report, Shell CEO Wael Sawan said he prefers to repurchase more of the company's shares rather than initiate a takeover bid for BP.

"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," a Shell spokesperson said in an emailed statement to MT Newswires.

BP did not immediately reply to a request for comment from MT Newswires.

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