CNOOC bids for Unocal

Unocal has received a proposal from CNOOC, an affiliate of China National Offshore Oil Company, to acquire all outstanding shares of Unocal for $67 per share in cash.

CNOOC said in a statement that their offer values Unocal at approximately $18.5 billion and represents a premium for Unocal’s shareholders of approximately $1.5 billion over the value of Chevron Corporation’s offer.

On April 4, 2005, Unocal agreed to be acquired by Chevron Corporation in a merger that offers Unocal stockholders an election, subject to proration, between $65 in cash, 1.03 shares of Chevron common stock and a combination of cash and Chevron commons stock for each Unocal share.

In connection with entering into the Chevron merger agreement, the Unocal board of directors recommended the transaction to Unocal stockholders, a recommendation remains in effect.

Unocal said that it intends to evaluate the CNOOC proposal ‘in a manner consistent with the board’s fiduciary duties and its obligations under the Chevron agreement.’ Unocal also said that there can be no assurance that the proposal would result in a definitive agreement with CNOOC.