US lawmakers oppose CNOOC deal
27 June 2005
Both Democrat and Republican lawmakers of the US Congress urged President George W. Bush to order a rigorous review of CNOOC Ltd's US$18.5bn unsolicited bid to acquire Unocal Corp of California, trumping Chevron's bid, the Wall Street Journal reported Monday. The letter obtained by the paper said 41 lawmakers "are very concerned" about CNOOC's US$67 per share offer. The opposition, though not yet powerful enough to kill the deal, demonstrates the extent of US suspicion about China acquiring a strategic US oil resource which is viewed as a prelude to more Chinese acquisitions of US companies. Building legislative and popular opposition could undermine the deal and lead to a battle between CNOOC and Chevron.
