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July 29, 2005
And Then the Guy With the Hockey Mask Jumps Through the Window...
In a move worthy of a Freddie/Jason/Chucky horror sequel, CNOOC seems intent on proving they're "not dead yet".
CNOOC considers raising Unocal bid
CNOOC executives are weighing whether the Chinese energy company will this weekend launch a potential knock-out bid of up to $20bn for Unocal, the US energy group, or accept defeat from US rival Chevron.While people close to the situation warned that a decision had not yet been taken and was too close to call, they said it was still possible CNOOC would increase its $18.5bn bid for Unocal in spite of pressure in Washington and Unocal support of Chevron.
It is understood the state-controlled group has drafted plans to increase its $67-a-share cash bid to more than $70 a share, valuing Unocal at about $19.3bn - about $2bn above Chevron's proposal.
One person familiar with the matter said CNOOC was considering going as high as $72 a share to compensate Unocal's shareholders for the 51-day delay to the completion of its bid imposed this week by the US Congress.
I'm assuming we'll hear from Mr. Schoenfeld shortly, urging the board to bite if this hits the table.
CNOOC has been considering a pledge to sell all of Unocal's US assets to help defuse criticism in Washington. But an attempt by CNOOC to win over Unocal's board with a "knock-out" offer could backfire by offering critics more evidence the bid is being heavily subsidised by Beijing.
Beijing's paying for this? I'm shocked, shocked, I tell you!
Posted by tree hugging sister at July 29, 2005 08:26 AM