Unocal-CNOOC saga continues
8 July 2005
Unocal and CNOOC continue to their talks on various issues, chief among them being Unocal's concern over what guarantees CNOOC would provide that the US$18.5bn acquisition won't collapse, as the Chinese oil company has no assets and virtually no legal presence in the US, the Wall Street Journal reported, citing an unidentified person familiar with the discussions. If Unocal's 10-person board recommends CNOOC proposal to shareholders -- and it is expected to do this "in a matter of weeks" said the report-- Chevron is said to be likely to up its bid. Meanwhile, CNOOC CEO Fu Chengyu told the Washington Post yesterday that "our board has made the decision that we have to win this bid".