CNOOC may counter-bid for Unocal: Report
Monday, May 9 2005 - 02:18 AM WIB
The newspaper said China's largest offshore oil producer had not ruled out going head-to-head with Chevron, and the possibility of a counter-bid would be discussed at a board meeting on May 23-24 ahead of CNOOC's annual shareholders meeting.
"Will the board discuss a resolution to bid for Unocal? No. Will the matter be a topic for discussion at the board meeting? Certainly," the UK-based newspaper quoted an unidentified source as saying.
CNOOC's management desire to bid for Unocal, which has gas and oil reserves in Thailand, Indonesia and central Asia, has been strengthened by the market's lukewarm reaction to Chevron's bid, the newspaper quoted unidentified sources as saying.
ChevronTexaco in April won a close race to scoop up smaller California rival Unocal for about $16.4 billion, pocketing prized assets in Asia and expanding its reach in the Gulf of Mexico.
ChevronTexaco shares have lost more than 7 percent since its announcement of the acquisition -- partly because of a fall in international oil prices.
Sources familiar with the situation told Reuters last month that CNOOC canceled what was an attractive offer for Unocal at the last minute because the plan, backed by CNOOC Chairman Fu Chengyu, failed to pass the Chinese firm's board.
One source told Reuters last month that CNOOC's offer included more cash than ChevronTexaco's bid, structured as 75 percent stock and 25 percent cash.
CNOOC was not immediately available for comments.
Industry sources have questioned the likelihood of any counter-bid from CNOOC because any new acquirer would have to pay a $500 million break-up fee to ChevronTexaco.(*)