The Bottom Line…

Unocal’s shareholders are set to vote August 10 on whether to accept the 18.5-billion-dollar cash bid from CNOOC, or a stock-and-cash offer from Chevron that is worth about 1.5 billion dollars less.

…before anything else.

Gheit said it was unlikely that Unocal would reject CNOOC’s offer out of hand. Institutional investors holding Unocal stock “aren’t going to give up nine percent or 10 percent to be more patriotic“, he said.
The Unocal board had already accepted the Chevron offer before the Chinese state firm entered the fray in late June…

categories Public Service Announcement | | datetime July 15, 2005 9:48 am

One Response to “The Bottom Line…”

  1. Dave J says:
    July 15, 2005 at 10:39 am

    Institutional investors like mutual and pension funds have fiduciary duties to the participants in their plans to seek the best return they can. It’s not their place to be the ones stopping this. However, regardless of what Congress or the adminstrative regulators (SEC, FTC, DOJ and there may be others) do, it also looks to me like Chevron has a case to enjoin sale to any third party, since Unocal’s board had already accepted their bid before there were any competing offers.

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