CNOOC set to make counter-bid for Unocal: Report

China's third largest oil group, China National Offshore Oil Corp (CNOOC), is set to announce a counter-offer to trump Chevron Corp.'s US$16 billion bid for Unocal Corp., a local newspaper reported on Friday.

CNOOC's board will meet in the next two weeks to make a final decision and is expected to approve a bid, the South China Morning Post said, quoting unidentified sources.

The newspaper said CNOOC, the parent of listed CNOOC Ltd., was expected to offer a premium of up to 10 percent on Chevron's US$16.4 billion cash and shares offer as an inducement to Unocal's shareholders.

If a deal is clinched, it would be biggest ever overseas purchase by a Chinese firm.

Sources said CNOOC had secured financing from mainland and foreign banks and was in talks with several international investment firms for the possibility of them taking a strategic stake in the venture aiming for taking over Unocal.

CNOOC is interested in acquiring Unocal because its oil and natural gas assets in Asia fit CNOOC's aspirations to become a major regional liquefied natural gas (LNG) player.(*)