CNOOC on verge of making counterbid for Unocal
CNOOC on verge of making counterbid for Unocal
Agence France-Presse, Beijing
China National Offshore Oil Corp (CNOOC) is on the verge of
making a counterbid in an attempt to beat ChevronTexaco Corp's
US$16 billion takeover offer for US oil major Unocal, reports
said on Friday.
Independent advisers hired by CNOOC will meet next week to
give their evaluation of the company's proposal for a counterbid
and are expected to approve it, the Financial Times reported,
citing people close to the situation.
"The sense is that the independent advisers are beginning to
draw their analysis to a close. It will be days rather than weeks
before they wrap it up. It is likely to be neutral to positive on
the deal," one person told the FT.
Support from the non-executive directors, who opposed a bid
for Unocal in April, would still require CNOOC to gain approval
from at least two Chinese government agencies, the newspaper
said.
The South China Morning Post carried a similar report, quoting
unnamed sources.
It said China's third-largest oil group was expected to offer
a premium of up to 10 percent on Chevron's cash and shares offer
as an inducement to Unocal shareholders.
CNOOC had secured financing from leading mainland and foreign
banks, and was in talks with several international investment
firms on the possibility of them taking strategic stakes in the
venture to take over Unocal, it said.
If successful, it would represent the biggest overseas
acquisition by a mainland company, dwarfing Lenovo Group's $1.25
billion takeover of IBM's global personal computer business.
CNOOC confirmed in a statement to the Hong Kong Stock Exchange
earlier this month that it was considering launching a possible
bid for Unocal.
It said a further announcement would be made "if and when
appropriate".
If CNOOC were to go ahead with an attempt to take over Unocal,
it would fit into a larger Chinese strategy of securing access to
energy sources overseas.
Unocal has gas and oil reserves in Thailand, Indonesia and
Central Asia.
The U.S. giant has more than 6,000 employees, with most of its
activities in Asia and North America. It has no refining or
marketing operations.