China’s Largest Oil Company Makes Bid for Unocal
By George Anderson
China’s largest offshore oil and gas producer, China National Offshore Oil Corporation (CNOOC) Ltd, has offered $67 in cash per each share of Unocal Corporation in a takeover
bid to rival Chevron Corporation. Chevron previously bid $65 a share for Unocal’s stock.
According to a report on TheStreet.com Web site, Unocal’s board is still recommending shareholders accept Chevron’s bid while it reviews the bid from CNOOC. Chevron announced
it had reached agreement with Unocal on a deal back in April.
A report on Asia Times Online said CNOOC’s chairman and CEO Fu Chengyu sent a letter to Unocal “saying that the company is seeking a consensual transaction with Unocal.”
CNOOC’s Fu, who earned a master’s degree in petroleum engineering from the University of Southern California, is confident the deal, if accepted by Unocal, will pass any regulatory
hurdles. “We believe the U.S. government will approve the deal,” he told Reuters. “Cash is cash. One hundred percent cash offers complete value certainty to Unocal shareholders,
as opposed to Chevron’s cash/stock offer.”
Moderator’s Comment: Do you have any concerns about Chinese company (in essence government) ownership of U.S. businesses?
We know that times change, but the last we looked China still considered itself a Communist nation. Our government has taken issue with China’s policy of
suppressing the rights of its citizens and threatening Taiwan. We guess Mr. Fu is right, “Cash is cash” and evidently that trumps personal beliefs. –
George Anderson – Moderator
- CNOOC bids US$67 per share for Unocal – Asia Times
- Transcontinental Fight Breaks Out Over Unocal – TheStreet.com
CNOOC confident in $18.5 bln Unocal offer – Reuters