CNOOC, China’s state-controlled international oil company, launched the first contested bid by a Chinese company when it announced an all-cash offer for Unocal, a US oil and gas company with assets in Asia. CNOOC’s offer values Unocal equity at $18.5 billion and outbids the recommended $17 billion shares-and-cash deal from US oil major Chevron. The Chinese company’s move is expected by the market to lead to a protracted bidding war.
Even before its offer was officially launched, the potential bid proved controversial when the non-executive directors of CNOOC refused to sanction management’s takeover plans without independent advice on the merits of the transaction.
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