Eni may bid for Unocal: Report

Italian oil company Eni SpA may be interested in bidding for Unocal Corp., according to a published report, setting the stage for a bidding war for the California oil and natural gas firm.

A story in the online edition of the Wall Street Journal early Monday citing people familiar with the matter reported Rome-based Eni, which is 30 percent state owned, has yet to decide on a formal offer but has been studying Unocal in recent weeks.

Two weeks ago, ChevronTexaco was reported to be weighing a bid for Unocal, a move analysts said would help Chevron boost flagging reserves in key regions.

Unocal's market capitalization is now about $16.5 billion. It has significant E&P assets in South East Asia, including Indonesia.

Representatives from Unocal and Eni could not be reached early Monday for comment on the report.

The Journal reported an Eni spokeswoman called talk of Unocal discussions "hypotheses from the market," saying that since Eni released its new strategic plan, many are speculating about how it will achieve its growth targets without a sizable acquisition. A Unocal spokesman declined to comment, according to the Journal.(*)