Firstly, it would need to be like this :
Secondly - be careful. One mistake that a lot of people make when they first try to do this is include a complete html page in the .shtml page - doctype and everything. All you should be including is some html (maybe of your footer/menu) - no doc-type, no <html> tags, no meta tags and no <body> tags - just the html that you want to include. (maybe this isn't your problem, but I've seen it happen so many times I really think it's worth stressing for anyone reading this).
<!--#include virtual="page.htm" -->
I hope this helps.