Wednesday, July 27, 2005
LexisNexis(TM) Academic - Document
LexisNexis(TM) Academic - DocumentCopyright 2005 The Financial Times Limited
Financial Times (London, England)
July 27, 2005 Wednesday
London Edition 1
SECTION: COMPANIES INTERNATIONAL; Pg. 28
LENGTH: 358 words
HEADLINE: CNOOC assesses new Unocal setback ENERGY:
BYLINE: By STEPHANIE KIRCHGAESSNER
DATELINE: WASHINGTON, NEW YORK and HONG KONG
BODY:
CNOOC, the state-owned Chinese energy company, was yesterday assessing how its chances of sealing a deal with California-based Unocal would be affected by a Congressional move that would delay completion of a regulatory review of any takeover.
US lawmakers agreed late on Monday that CFIUS, the committee on foreign investments in the US, would be barred from completing its probe into any CNOOC-Unocal deal until three government departments complete a study of the impact of China's energy demands on US security.
The study, which must be completed within 120 days, would also investigate the level of reciprocity in US-China trade relations. The amendment, which would extend the review process by at least 51 days, is the latest in a series of setbacks for CNOOC on Capitol Hill.
Unocal shareholders are expected to vote on August 10 on an agreed Dollars 17bn offer from US rival Chevron. CNOOC has been deciding whether to raise its rival Dollars 18.5bn bid in the hope of winning the support of Unocal's board; make a hostile bid ahead of the August vote; or withdraw its offer.
CNOOC said the amendment, likely to become law as part of a wider energy bill, was "much better" than the original proposal, which would have delayed the beginning of a regulatory review of any CNOOC deal by up to six months.
The company underscored that the amendment did not strip President George W. Bush of the ultimate responsibility for accepting or rejecting the deal.
But one CFIUS lawyer said the study could have a significant impact on the regulatory review process because it would force the departments of energy, homeland security and defence to go "on the record" on issues likely to be highly critical of China.
"The substance of the report (potentially) boxes the administration in. It will be hard for CFIUS to say, 'this is a great deal, let's approve it'," the lawyer said.
Unocal investors said the amendment did not significantly alter the potential closing of a CNOOC deal.
"(The amendment) only creates a modest shift in timing," said Peter Schoenfeld, of P. Schoenfeld Asset Management, which owns Unocal shares. See Editorial Comment, Lex, World News
LOAD-DATE: July 27, 2005
Financial Times (London, England)
July 27, 2005 Wednesday
London Edition 1
SECTION: COMPANIES INTERNATIONAL; Pg. 28
LENGTH: 358 words
HEADLINE: CNOOC assesses new Unocal setback ENERGY:
BYLINE: By STEPHANIE KIRCHGAESSNER
DATELINE: WASHINGTON, NEW YORK and HONG KONG
BODY:
CNOOC, the state-owned Chinese energy company, was yesterday assessing how its chances of sealing a deal with California-based Unocal would be affected by a Congressional move that would delay completion of a regulatory review of any takeover.
US lawmakers agreed late on Monday that CFIUS, the committee on foreign investments in the US, would be barred from completing its probe into any CNOOC-Unocal deal until three government departments complete a study of the impact of China's energy demands on US security.
The study, which must be completed within 120 days, would also investigate the level of reciprocity in US-China trade relations. The amendment, which would extend the review process by at least 51 days, is the latest in a series of setbacks for CNOOC on Capitol Hill.
Unocal shareholders are expected to vote on August 10 on an agreed Dollars 17bn offer from US rival Chevron. CNOOC has been deciding whether to raise its rival Dollars 18.5bn bid in the hope of winning the support of Unocal's board; make a hostile bid ahead of the August vote; or withdraw its offer.
CNOOC said the amendment, likely to become law as part of a wider energy bill, was "much better" than the original proposal, which would have delayed the beginning of a regulatory review of any CNOOC deal by up to six months.
The company underscored that the amendment did not strip President George W. Bush of the ultimate responsibility for accepting or rejecting the deal.
But one CFIUS lawyer said the study could have a significant impact on the regulatory review process because it would force the departments of energy, homeland security and defence to go "on the record" on issues likely to be highly critical of China.
"The substance of the report (potentially) boxes the administration in. It will be hard for CFIUS to say, 'this is a great deal, let's approve it'," the lawyer said.
Unocal investors said the amendment did not significantly alter the potential closing of a CNOOC deal.
"(The amendment) only creates a modest shift in timing," said Peter Schoenfeld, of P. Schoenfeld Asset Management, which owns Unocal shares. See Editorial Comment, Lex, World News
LOAD-DATE: July 27, 2005
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