Unocal Holders Approve Chevron's $17.8 Bln Purchase

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Unocal Holders Approve Chevron's $17.8 Bln Purchase
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Aug. 10

(Bloomberg) -- Unocal Corp. shareholders approved Chevron Corp.'s $17.8 billion takeover, clearing the way for the creation of the world's fourth-largest publicly traded oil company.

The shareholders voted 77.2 percent in the acquisition. Investors in Unocal, based in El Segundo, California, will get a combination of cash and Chevron stock that values their shares at $65.43 under terms of a July 19 agreement between the companies.

Chevron, based in San Ramon, California, prevailed over a higher offer from China's Cnooc Ltd. because of concern among Unocal directors that political opposition in Washington would delay or kill the Chinese overture. Chevron, which expects to complete the transaction today, will add 16 percent to its oil and gas reserves and reverse a three-year slump in production.

``This is a key acquisition for Chevron because it expands their asset base in areas of emerging demand,'' Douglas Christopher, who helps manage $8 billion, including Chevron shares, at Crowell Weedon & Co. in Los Angeles, said before the vote. ``They bought these assets at a time of high prices but that's not a negative since energy prices are going to stay high for the remainder of the decade.''


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http://quote.bloomberg.com/apps/news?pid=10000103&sid=aK7sW.a8Kpkw&refer=news_index

[whistle]

1. What, is the Chinese money not any good?