CNOOC considers bid for Unocal

CNOOC considers bid for Unocal

Associated Press, New York

China's third biggest oil and natural gas company is considering
making a bid for all or part of U.S. rival Unocal Corp.,
published reports said on Friday. If true, it would be the latest
indication of China's rising appetite for overseas investment.

The Financial Times said that China National Offshore Oil
Corp. was considering a bid or more than US$13 billion (euro9.85
billion) for all of Unocal, which is based in El Segundo,
California, and is the ninth biggest U.S. oil company in terms of
reserves.

Unocal has a policy of refusing to comment on rumors about
acquisitions and mergers, company spokesman Barry Lane said on
Friday.

Unocal shares rose $1.18, or 2.7 percent, to $45.32 in
afternoon trading Friday on the New York Stock Exchange, giving
the company a market value of about $11.75 billion.

The newspaper said the state-controlled Chinese company, also
known as CNOOC, had asked bankers to study a takeover of the
whole company followed by a subsequent sales of the U.S. assets.

It said the contacts between the companies were at a very
early stage and that detailed talks had yet to take place.

The Wall Street Journal, which reported CNOCC was eyeing
Unocal, said its interest was "highly preliminary" and cited no
possible price. The newspaper said Unocal has an attractive array
of oil and gas assets in Southeast Asia.

The reports each cited sources who were not identified by
name.

China's economy has been growing rapidly and its expansion has
driven up its demand for foreign oil and other commodities and
its interest in foreign consumer markets.

Last month, Lenovo Group, China's biggest computer maker, said
it was buying International Business Machines Corp.'s personal
computer business for $1.25 billion and would assume $500 million
in debt.