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Tuesday, 02 December, 2008, 22:10 GMT | more >>

Chinese giant offers $18.5bn, while Chevron sticks to its guns


CNOOC Ltd raises stakes with Unocal bid



By Upstream staff 

China National Offshore Oil Corporation Ltd (CNOOC Ltd) has offered $18.5 billion for Unocal in a counter-bid which comes in almost $1.5 billion higher than the price Chevron is willing to pay for the US independent.

The CNOOC Ltd counter-offer amounts to $67 in cash per Unocal share.

Fu Chengyu, the Beijing giant's chief executive, said: "This friendly, all-cash proposal is a superior offer for Unocal shareholders.

"The deal is fully financed, subject to customary closing conditions, and priced in line with market values for comparable businesses. We hope to be able to enter into a dialogue with Unocal soon and reach agreement on a consensual transaction."

CNOOC Ltd said it would finance the deal through a combination of its cash reserves of more than $3 billion and a number of credit deals, including $3 billion in bridge loans from Goldman Sachs and JP Morgan. The bridging loans would later be replaced by permanent debt financing.

Unocal said it would evaluate the CNOOC Ltd offer "in a manner consistent with the board's fiduciary duties and its obligations under the Chevron agreement".

It added that CNOOC Ltd's bid would not necessarily be accepted.

Unocal's board has already recommended the transaction with Chevron to Unocal stockholders, and that recommendation remains in effect, a company spokesman said.

Meanwhile, Chevron said: "Chevron stands behind its 4 April 2005 merger agreement with Unocal, which has been approved by the boards of both companies.

"A transaction with Chevron is highly likely to close, while the CNOOC Ltd proposal must undergo an extensive regulatory process in the US and elsewhere."


Wednesday, 22 June, 2005, 20:19 GMT  | last updated: Thursday, 23 June, 2005, 10:32 GMT

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