Chinese energy giant attempts takeover of Unocal!!

[BurtWorm]

:wow:

http://www.nytimes.com/2005/06/23/business/worldbusiness/23unocal.html?ei=5094&en=dcfb017668d1c0af&hp=&ex=1119585600&partner=homepage&pagewanted=print


June 23, 2005
Chinese Oil Giant in Takeover Bid for U.S. Corporation

By DAVID BARBOZA and ANDREW ROSS SORKIN

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 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 deal with Chevron after a $500 million breakup fee.

[Selatius]

1. First they will try to emulate us, then they will try to overtake us

This will probably be the first in a long line of takeovers and attempted takeovers by Chinese corporations over the next several decades. They are the new players on the block, and they want a piece of us.

Edit: Thinking back. They don't want a piece of "us" per se. They want a piece from our corporate masters here in the States.

[BurtWorm]

2. We owe them a piece of us.

;)

[jobycom]

3. Gee, if they buy Unocal, does Afghanistan come with the package?

[Selatius]

4. Hmm, that would give China a foothold in Afghanistan

Russia, China, and the US eye the untapped oil/natural gas reserves in Central Asia. They all want to develop the region.

[BurtWorm]

6. The US could find itself in a weaker position than China to develop it.

Weird.

[Junkdrawer]

15. Great minds:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=104&topic_id=3926495&mesg_id=3926625

:evilgrin:

[Hobarticus]

5. $18.5 billion, unsolicited? Holy cats!

That's some serious cabbage. Ten bucks says this will go down, and Dubya will do nothing to discourage it.

[1932]

9. It'll be nice to get back some of the money we send over there.

And I presume it's going to produce a lot of gains taxable in the US.

[1932]

7. Amazing, considering China is a developing nation.

I think the average income in china is only 450 bucks a year. They've already cut poverty a great deal, and salaries are only going to increase. They have even more room to grow.

[Melodybe]

8. China is the next big world power.

A zen influence of things could be good, but the faux-communism anti-freedom side is scary.

[1932]

10. It's not faux communism. It's a gradual shift to a market economy

rather than market economcy by immersion (which is the IMF"s preferred method and which fails everywhere).

[Melodybe]

12. Bad choice of words, I meant the totalitarian government not the economy

I said faux communism, because they call themselves communists but aren't.

[1932]

14. I was talking about their economic system. They definitely aren't afraid..

...to say that they're moving to a market economy.

[rman]

17. It's a shade of faux communism at least

They do have a state controlled press.
The latest is that any regional news agency in China may only get national news from the state controlled press agency - that is in fact more restricted than it already was. This is similar to what's happening with the press in Russia.

I think it's quite interesting that the neocon-corporate allience doesn't feel the need to spread democracy there, but rather do business with them (outsourcing amongst other things).

[left is right]

11. i'm too old to learn Chinese

and even if I could learn it, my handwriting is too bad to make those elegant looking symbols they call a written language

[cire4]

13. Better get used to these reports....

How ironic that American corporations are going to be eaten by the beast that it helped create. All part of the Chinese's slow and gradual takeover of our economy...

[Pryderi]

16. Watch the movie, "Network" and substitute China for Middle East