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CHINESE OIL COMPANY INTERESTED IN UNITED STATES OIL COMPANY

 
 
Amigo
 
  1  
Reply Wed 20 Jul, 2005 10:25 am
Yes. Now I see your point.
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hamburger
 
  1  
Reply Wed 20 Jul, 2005 01:16 pm
btw the purchase by the chinese did not go through, i believe.
of course, the basic question is : "what is free trade" ?
just noticed that in europe the sugarbeet-farmers are up in arms over the proposed import of cheap cane-sugar from africa and other third-world countries. they are quite sure it'll be their ruin; but how are third-world countries ever going to get out from under unless we are willing to buy from them.
i guess it's always NIMBY - "not in my back yard !". hbg
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Walter Hinteler
 
  1  
Reply Wed 20 Jul, 2005 01:25 pm
Under pressure from the US government, Unocal late Tuesday accepted an increased $17.1 billion buyout bid from Chevron, turning down an $18.5 billion offer from the China National Offshore Oil Company Ltd. (CNOOC). Unocal had made an earlier merger deal with Chevron when the CNOOC offer was made. US legislators had objected to the China bid amidst concerns of allowing the Chinese government, which owns 70% of the CNOOC, to control such a large US-based oil company. China said the fears of hoarding were unfounded and urged Congress not to interfere.



Quote:

Unocal accepts Chevron, rejects China suitor
20/07/2005 14h12


©AFP/FileLOS ANGELES (AFP) - US oil firm Unocal accepted an improved 17.1-billion-dollar takeover bid from Chevron, snubbing a higher but politically charged bid from China's state-owned CNOOC which insisted it offered a better deal.

Unocal, the ninth-largest US oil company, and Chevron jointly announced the merger, which will be submitted to a vote by Unocal shareholders on August 10.

China National Offshore Oil Corp. (CNOOC) had offered 18.5 billion dollars but the bid had set off a controversy in the United States about a major US firm falling into Chinese hands. Some US lawmakers sought to have it blocked because of security concerns.

Unocal had already agreed a merger with Chevron in April when it received the rival CNOOC bid.

The new Chevron bid values Unocal at 63.01 dollars per share based on its closing price Tuesday. Chevron's previous offer was for 60.51 dollars in cash and stock.

"Our increased offer has been driven by competitive circumstances, but even at this higher price it remains a compelling transaction for Chevron stockholders," Chevron chairman and chief executive David O'Reilly said in a statement.

CNOOC's cash offer was higher. "Our reaction is that we still have the superior offer and it is superior because we are making an all cash offer at 67 dollars a share," Ray Bashford from Brunswick Group, CNOOC's media relations firm, told AFP in Hong Kong, indicating that the Chinese firm was ready to continue negotiations.

A CNOOC spokesman echoed similar sentiments. "We think that our full-cash offer is still superior even after Chevron raised its bid," he was quoted as saying by Xinhua, China's official news agency.

Members of the US House of Representatives' Armed Services Committee had said an acquisition by CNOOC would give Beijing access to a strategically vital asset and should be blocked.

The US lawmakers' move drew an outcry from the Chinese government, which condemned the lawmakers' initiative as political interference in what it insisted was a strictly business deal.

Unocal and Chevron issued a joint statement Wednesday saying a new merger had been agreed.

"The Unocal board of directors recommends that Unocal stockholders vote in favor of adopting the Chevron merger agreement, as amended, at the special meeting of stockholders scheduled for August 10, 2005," Unocal said in the joint statement.

Chevron's revised offer consists of 40 percent cash and 60 percent stock, with the company paying about 7.5 billion dollars in cash and issuing about 168 million shares.

It gives Unocal shareholders three options for each share held: to receive 69 dollars in cash; 1.03 shares of Chevron common stock; or a combination of 27.60 dollars in cash and 0.618 of a share of Chevron common stock.

Unocal, based in El Segundo near Los Angeles, is one of the world's leading independent energy companies, specialized in the exploration and production of oil and natural gas, but it lacks refining operations and a distribution network.

Unocal employs about 6,000 people worldwide, mainly in North America and Asia. Most of its oil and gas assets are in Asia, notably in Thailand, Indonesia and central Asia.

The company posted 2004 net profit of 1.2 billion dollars on sales of eight billion.

Its bigger, friendly suitor Chevron reported net profit of 13.3 billion dollars for the same year on sales of 155.3 billion.

Analysts have pointed out that politics may not be uppermost in Unocal shareholders' minds when they vote August 10 on whether to accept the 18.5-billion-dollar cash bid from CNOOC, or the stock-and-cash offer from Chevron that is worth about 1.4 billion dollars less.

An oil analyst with Oppenheimer and Co., Fadel Gheit, said earlier this month that it was unlikely that CNOOC's offer would be rejected out of hand.

Institutional investors holding Unocal stock "aren't going to give up nine percent or 10 percent to be more patriotic", Gheit said.

China is now the world's third largest importer of oil and CNOOC needs assets to feed its terminals. Analysts have said that CNOOC may now look to other targets in Asia to secure gas supplies for its terminals.

They have suggested other potential acquisitions could include stakes in Woodside Petroleum or Santos of Australia or even whole companies such as BG Group or US-based Marathon.

Source
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goodfielder
 
  1  
Reply Wed 20 Jul, 2005 06:34 pm
Britain isn't a totalitarian state. China is.
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hamburger
 
  1  
Reply Wed 20 Jul, 2005 07:23 pm
goodfielder wrote : "Britain isn't a totalitarian state. China is. "

nevertheless plenty of u.s. corporation are happy to do business with china, walmart being a good - but not the only - example.
until about five years ago walmart displayed large banners in its stores saying : " our merchandise is proudly produced in the united states ".
...no more banners ! hbg
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BlaiseDaley
 
  1  
Reply Wed 20 Jul, 2005 07:32 pm
Goodfielder, I don't think the fact that China is a totalitarian state is as much the issue as it is any foreign entity owning assests as valuable as a US oil company. As hamburger pointed out, we have no qualms whatsoever about doing business with China, the bigger issue is our being able to maintain control over our own resources... and everone elses too, heeheehee.
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hamburger
 
  1  
Reply Wed 20 Jul, 2005 07:47 pm
chinese oil company
anyone interested in the full story - a rather lengthy one - of the interest of the chinese state oil company in picking up an american oil company might want to read the following article. it's from the "bloomberg" business news which is a reliable source. hbg


...CHINESE STATE OIL COMPANY...
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Amigo
 
  1  
Reply Mon 8 Aug, 2005 04:30 pm
Deal fell through.China says political atmostphere to tense.China now dealing with other countries that also don't like the american political atmostphere.
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Mr Stillwater
 
  1  
Reply Tue 9 Aug, 2005 04:18 am
I certainly don't claim to be an expert on US business law*. However, didn't the govt of the day deliberately *break up* the predecessor of Uncol/Exxon/Chevron to STOP them from dominating the market?








*on US political law, I am as expert as the next person!!
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Amigo
 
  1  
Reply Tue 9 Aug, 2005 02:19 pm
I don't know.I read what I wrote in the paper.
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InfraBlue
 
  1  
Reply Wed 10 Aug, 2005 12:31 am
Mr Stillwater wrote:
I certainly don't claim to be an expert on US business law*. However, didn't the govt of the day deliberately *break up* the predecessor of Uncol/Exxon/Chevron to STOP them from dominating the market?


Yeah, that was Standard Oil Co., John D. Rockefeller's oil co. It was broken up in 1911 after the Supreme Court of The United States found the company in violation of the 1890 Sherman Antitrust Act. Exxon, Mobil, Chevron, American, and Esso sprang from the breakup.
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hamburger
 
  1  
Reply Thu 18 Aug, 2005 01:38 pm
chinese oil company
...UNCLE DICK WILL VISIT CANADA...
...vice-president dick cheney will be visiting canada in september "to do some hunting and fishing in alberta" ... "he'll also be looking at the canadian tar sand operations".

(canadians are being advised to lock up their silver and good china until after uncle dick has left). hbg
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