(business) CNOOC eyes $13bn bid for US rival Unocal (from ATSNN), page 1

China�s third biggest state controlled oil and gas giant CNOOC is considering a bid of more than $13 billion U.S. for U.S. rival Unocal. Sources close to CNOOC say they are interested in Unocal�s Asian assets and it would mark the largest and most significant overseas acquisition by a Chinese company to date.

news.ft.com
CNOOC eyes $13bn bid for US rival Unocal

Francesco Guerrera and Joseph Leahy in Hong Kong
Published: January 6 2005 23:05 | Last updated: January 6 2005 23:05

CNOOC, China�s third biggest oil and gas group, is considering a bid of more than $13bn for its US rival Unocal in a deal that would mark the largest and most significant overseas acquisition by a Chinese company.
People close to the situation said the state-controlled group was interested in Unocal�s Asian assets and had asked bankers to study a takeover of the whole company followed by a subsequent sale of the US assets.
People close to the negotiations warned that they were at an early stage and detailed talks had yet to take place. It is understood the Chinese group is also looking at other overseas targets.
CNOOC�s plans are the latest sign of Beijing�s determination to push its flagship commodity companies to acquire natural resources to fuel the country�s rapid industrialization and economic growth. Link

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China is hoping to buy all of the California based company that is listed as being worth $11 billion but has a market value of $21.5 billion. I find it hard to believe the American government would allow Unocal to sell to China seeing the U.S. must maintain it�s own needs for crude oil. It seems a bit backwards to me to be selling of oil companies, I don't think it will happen.

[edit on 8/1/2005 by Sauron]