Posted on 06/22/2005 8:12:53 PM PDT by Archangelsk
SHANGHAI, Thursday, June 23 - One of China's largest state-controlled oil companies made a $18.5 billion unsolicited bid Thursday for Unocal, signaling the first big takeover battle by a Chinese company for an American corporation.
The bold bid, by the China National Offshore Oil Corporation ( CNOOC), may be a watershed in Chinese corporate behavior, and it demonstrates the increasing influence on Asia of Wall Street's bare-knuckled hostile takeover tactics.
The offer is also the latest symbol of China's growing economic power and of the soaring ambitions of its corporate giants, particularly when it comes to the energy resources it needs desperately to continue feeding its rapid growth.
CNOOC's bid, which comes two months after Unocal agreed to be sold to Chevron, the American energy giant, for $16.4 billion, is expected to incite a potentially costly bidding war over the California-based Unocal, a large independent oil company. CNOOC said its offer represents a premium of about $1.5 billion over the value of Unocal's agreement with Chevron.
Moreover, the effort is likely to provoke a fierce debate in Washington about the nation's trade policies with China and the role of the two governments in the growing trend of deal making between companies in the countries.
(Excerpt) Read more at nytimes.com ...
The PRC wins this one, they will find out the true power of the American consumer, as we run to American companies.
Oil is the one thing they can't make cheaply.
Better start boycotting Walmart then (a wholly owned subsidiary of the PRC).
Our leaders better not ever let it happen, ever.
No you won't. And, what American companies? So many people have waited so long to do something about the problem that nothing much is left to do. End of story.
Lots of alternatives to unical. Shell, Sinclair, etc.
Doens't UnoCal have tome California production? That plus its Asian and other holdings will be diverted to China's increased demand.
California oil to China....
And didn't Russia's Lukoil buy Getty a while back?
I saw a Lukoil billboard in Philadelphia the other day.
Shell is a Dutch company.
Don't know about Sinclair, but since they have no market presence where I live, it doesn't matter much.
Leaders? What leaders? You mean the whores with R or D after their names?
National Security anyone?
Please tell me the free-markets whores see the danger of this being approved.
So true. What's worse, how many Americans really fathom we have been targeted and some of our own corporate giants are assisting the enemy for a profit?
Not on your life.
ping
Lets see...do I have the talking point correct?....
'We give them worthless 'paper'....they give us STUFF.'
Great top quality stuff...real cheap too.
Now it appears that they are returning the favor...they are going to take all of that 'paper'...and start buying OUR STUFF back.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.