CNOOC considers bid for Unocal<\/p>\n
Associated Press, New York<\/p>\n
China's third biggest oil and natural gas company is considering
\nmaking a bid for all or part of U.S. rival Unocal Corp.,
\npublished reports said on Friday. If true, it would be the latest
\nindication of China's rising appetite for overseas investment.<\/p>\n
The Financial Times said that China National Offshore Oil
\nCorp. was considering a bid or more than US$13 billion (euro9.85
\nbillion) for all of Unocal, which is based in El Segundo,
\nCalifornia, and is the ninth biggest U.S. oil company in terms of
\nreserves.<\/p>\n
Unocal has a policy of refusing to comment on rumors about
\nacquisitions and mergers, company spokesman Barry Lane said on
\nFriday.<\/p>\n
Unocal shares rose $1.18, or 2.7 percent, to $45.32 in
\nafternoon trading Friday on the New York Stock Exchange, giving
\nthe company a market value of about $11.75 billion.<\/p>\n
The newspaper said the state-controlled Chinese company, also
\nknown as CNOOC, had asked bankers to study a takeover of the
\nwhole company followed by a subsequent sales of the U.S. assets.<\/p>\n
It said the contacts between the companies were at a very
\nearly stage and that detailed talks had yet to take place.<\/p>\n
The Wall Street Journal, which reported CNOCC was eyeing
\nUnocal, said its interest was \"highly preliminary\" and cited no
\npossible price. The newspaper said Unocal has an attractive array
\nof oil and gas assets in Southeast Asia.<\/p>\n
The reports each cited sources who were not identified by
\nname.<\/p>\n
China's economy has been growing rapidly and its expansion has
\ndriven up its demand for foreign oil and other commodities and
\nits interest in foreign consumer markets.<\/p>\n
Last month, Lenovo Group, China's biggest computer maker, said
\nit was buying International Business Machines Corp.'s personal
\ncomputer business for $1.25 billion and would assume $500 million
\nin debt.<\/p>",
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