Washington opposition forces Chinese to withdraw oil offer

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David Teather in New York
Wednesday August 3, 2005
The Guardian

The Chinese energy firm Cnooc yesterday abandoned its $18.5bn (£10.5bn) bid for US oil and gas firm Unocal, citing "unprecedented political opposition" from Washington.

The bid by Cnooc, which is 71% owned by the Chinese government, sparked a furious outcry in Washington where politicians denounced the offer as a threat to national security.

Some of the more fiery rhetoric characterised the bid as the beginning of a frantic grab by the Chinese for control of the world's energy supplies. California congressman Richard Pombo warned that the deal could have "disastrous consequences for our economic and national security".

Cnooc's decision to pull out means Unocal is likely to accept the lower $17.5bn offer from rival American energy firm, Chevron.
Cnooc left little doubt that its bid had been skewered by politics. Cnooc said it had considered raising its offer further but decided it was not worth it.

http://www.guardian.co.uk/business/story/0,3604,1541433,00.html

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1. Duplicate topic

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