CNOOC abandons Unocal Bid
By Karen Remo-Listana
Posted: 08 August 2005
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CNOOC limited announced that it has withdrawn its offer for Unocal: a move, which according to CNOOC is clearly to the disadvantage of Unocal shareholders and employees.
CNOOC's fully financed offer to acquire all of Unocal's outstanding  shares for cash at a price of $18.5 billion represents a premium of approximately $1 billion above Chevron's current competing bid and clearly superior value for Unocal shareholders.
The company in a statement said that the move was mainly triggered by the US political environment.
“The unprecedented political opposition that followed the announcement of our proposed transaction, attempting to replace or amend the CFIUS process that has been successfully in operation for decades, was regrettable and unjustified,” said CNOOC.
“This political environment has made it very difficult for us to accurately assess our chance of success, creating a level of uncertainty that presents an unacceptable risk to our ability to secure this transaction.”
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