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WP/AP: Unocal Board Backs Revised Chevron Bid (rejects Chinese bid)

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DeepModem Mom Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 09:52 AM
Original message
WP/AP: Unocal Board Backs Revised Chevron Bid (rejects Chinese bid)
Unocal Board Backs Revised Chevron Bid
By GARY GENTILE
The Associated Press
Wednesday, July 20, 2005; 8:22 AM


LOS ANGELES -- Unocal's board of directors has endorsed a sweetened, $17 billion takeover bid from Chevron, rejecting a higher offer from one of China's state-owned oil companies.

The decision by Unocal's board late Tuesday could signal an end to China's most ambitious attempt yet to acquire an American corporation. The takeover battle also had sparked debate about U.S. security concerns with the communist nation.

Chevron boosted its offer by $2 per share to $63 per share _ or $17 billion overall _ shortly before the Unocal board met Tuesday night. CNOOC Ltd., an affiliate of China National Offshore Oil Corp., has an $18.5 billion offer on the table for the El Segundo-based company. Unocal's board had previously also endorsed Chevron's lower offer over the higher CNOOC bid.

In a joint statement with Chevron, Unocal's board urged stockholders late Tuesday to accept the amended bid at a shareholders' meeting scheduled for Aug. 10.

But a spokesman for China's third-largest oil company vowed early Wednesday that CNOOC was not ready to drop out of the bidding war....


http://www.washingtonpost.com/wp-dyn/content/article/20...
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endarkenment Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 09:54 AM
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1. shareholder lawsuit pending. nt
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KeepItReal Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 09:56 AM
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2. Why did Chevron even bother upping bid? They had this deal in the bag
It would make more sense if they had outbid the Chinese the second time around.
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still_one Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 10:00 AM
Response to Reply #2
4. it is very simple
they realizie that if they lose the bid, and CNOOC wins it, UCL and CNOOC would have to go through the regulatory process from square one, and that would take another six months. That does NOT even count the political ramifications, if congress decides to get involved

Based on the above, it makes perfect business sense what they did

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KeepItReal Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 10:28 AM
Response to Reply #4
5. Not possible for Chevron to lose to the Chinese. Congress says no to China
The only way Chevron could lose would be if an Exxon/Mobile stepped in and offer $.01 more per share.

I don't understand the logic in Chevron upping their bid to a price that is still less than the Chinese offer, knowing that they (Chevron) have Congress in their back pocket.
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moondust Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 10:58 AM
Response to Reply #5
6. Perhaps they're not very smart.
Why pay a nickel when you can get it for a quarter?
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still_one Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 01:12 PM
Response to Reply #5
8. Actually the CNOOC bid is all cash, the CVX bid is not
yes, Congress is an unknown, but it is also very unlikely that the bush administration would oppose it. For one thing other foreign companies have already bought American oil companies, and U.S. companies are allowed to invest in China

This potentially would setup a major trade war if it got to that point, which would have unknown consequences

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TahitiNut Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 09:59 AM
Response to Original message
3. Nationalize 'em!
Edited on Wed Jul-20-05 10:00 AM by TahitiNut
The further consolidation of oil companies is NOT in the public interest! It's past time to nationalize the oil companies. Even in opposing the takeover by the Chinese, Congress has as much as admitted that public control is essential.
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mbperrin Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-20-05 11:03 AM
Response to Original message
7. Wooops!! Looks like shareholder interests have been ignored
here!!!

Billion and a half LESS just to do business with someone with an oil tanker named "Condoleeza"???!!

Don't think so...
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