NationStates Jolt Archive

http://news.bbc.co.uk/2/hi/business/4621161.stm

CNOOC ready to discuss US oil bid
Chinese oil firm CNOOC is ready to hold talks with takeover target Unocal and the US government about its $18.5bn (£9.8bn) bid for the US group.
The group said it hoped the offer of talks would address concerns about its bid for the ninth biggest US oil firm.

CNOOC tabled its bid for Unocal on Thursday - triggering a bidding war with prospective buyer Chevron.

Unocal has said it will consider the Chinese bid, but added it remained committed to Chevron's lower $18bn bid.

The group also said it had received permission from Chevron to talk to CNOOC about its proposed bid.

Delay worries

The Chinese group is hoping its all cash proposal will win out over Chevron's cash and share offer.


Substantially all of the oil and gas produced by Unocal in the US will continue to be sold in the US
Fu Chengyu, CNOOC

However, it is facing a number of hurdles that could mean lengthy delays, and kill off the deal.

Four members of Congress have urged the US government to review the security implications of allowing a Chinese state-controlled firm to take control of the firm - a process that would be examined by the Committee on Foreign Investment in the US (CFIUS).

But CNOOC has moved to allay those fears by saying it is willing to discuss selling some Unocal assets and allow US management to run others.

Deal 'concessions'

"We are fully prepared to participate in a CFIUS (Committee on Foreign Investment in the US) review of the transaction and we have proactively made assurances to Unocal to address concerns relating to energy security and ownership of Unocal assets located in the United States," CNOOC chief executive Fu Chengyu said in a statement.

"Substantially all of the oil and gas produced by Unocal in the US will continue to be sold in the US," Mr Fu added.

However, while noting that 70% of the group's oil and gas assets were in Asia he declined to say what plans CNOOC had for them.

Meanwhile, in an effort to take advantage of any delays in the Chinese bid, Chevron has moved its timetable for the takeover forward to August.

"Given the regulatory hurdles and longer approval time, the 9% premium may not be enough incentive for Unocal to terminate the Chevron agreement," Bruce Edwards, analyst at AG Edwards, said in a research note - adding he was confident Chevron would win out in the takeover tussle.
Thoughts?

Hands Off The Free Market!!

Yes. The sooner China acheives its goal of purchasing America, the better.

Yes. The sooner China acheives its goal of purchasing America, the better.

Yes!

Hell Yea

Aww, whats the big deal? they need the oil anyway. Plus, CNOOC is run a lot like a private company anyway. The chinese are pretty good at running things.

But if it were shell or BP, well thats another matter.

Aww, whats the big deal? they need the oil anyway. Plus, CNOOC is run a lot like a private company anyway. The chinese are pretty good at running things.

But if it were shell or BP, well thats another matter.

If it were BP, the British government would probably say "No", being the major shareholder and all...

I don't expect much will be done to stop this-Too many in both parties rely on chinese campaign contributions to lift a finger to prevent it, and neither party is capable of understanding the long-term strategic threat implied.
My parents' generation have sold the future of their grandchildren for cheap nikes.

Given that the USA is constantly bashing developing nations into adopting extreme open market policies I say it's about time the USA realised what it means to be free market.

Go China

I thought UNOCAL was the University of Northern California.

Yes. The sooner China acheives its goal of purchasing America, the better. I hope you aren't so blinded by anti-americanism that you'd prefer the dominant power was a human rights abusing monster fascist oligarchic dictatorship.

I hope you aren't so blinded by anti-americanism that you'd prefer the dominant power was a human rights abusing monster fascist oligarchic dictatorship.
Wooop Wooop! Irony alert! Irony alert! :D

Wooop Wooop! Irony alert! Irony alert! :D This is depressing, I hope you are joking. Much as I may disagree with a large portion of the U.S.A.'s foreign policy, they're still waaaaaay better than any half-baked oppressive nuthouse of a nation.

Here's a fair point of comparison.

- The U.S.A. does something it's people disagree with. There are protests, elections come around, the ruling party is voted out.

-China does something it's people disagree with. Some people try to speak out against it, but they are quickly either imprisoned, tortured or shot. If there are any protests, the movement is crushed, mass arrests take place and there is heavy bloodshed. Unarmed civilians die by the bucketload.

UNOCAL must not be sold to the Chinese. A sale would give China alot more power and as such would be terrible for our national security. China is rapidly trying to buildup it's military and we don't need to enable it.

This is depressing, I hope you are joking. Much as I may disagree with a large portion of the U.S.A.'s foreign policy, they're still waaaaaay better than any half-baked oppressive nuthouse of a nation.

Here's a fair point of comparison.

- The U.S.A. does something it's people disagree with. There are protests, elections come around, the ruling party is voted out.

-China does something it's people disagree with. Some people try to speak out against it, but they are quickly either imprisoned, tortured or shot. If there are any protests, the movement is crushed, mass arrests take place and there is heavy bloodshed. Unarmed civilians die by the bucketload.

I'd take the first option myself by a long shot.

I don't see anything wrong with it. You can't accuse China of communism anymore - I would have thought that would be encouraging.

If they can pay for it, why not let them buy it?

I hope you aren't so blinded by anti-americanism that you'd prefer the dominant power was a human rights abusing monster fascist oligarchic dictatorship.
Human rights abusing? Check
Monster? Check
Fascist? Well,it checks a few of the boxes
Oligarchic? IMO Check
Dictatorship? IMO it's heading that way.
It was meant to be a fun comment, but looking back at what you said, I'll have to stand by it.*shrugs*

This is a national security issue. In fact legislation should be passed in congress to block this and future energy and high tech purchases. I still cant believe the IBM deal was ok'd. That was bs too.

The people of Canada should be worried as well. China has it's eyes on your huge oil reserves in Alberta. Do any of you Canadians know of that deal between China and Petro Canada.


BTW The Chinese pretty much control the Panama Canal, why would we want to give them more? I for one do not want Chinese oil rigs in the Gulf of Mexico.

If it were BP, the British government would probably say "No", being the major shareholder and all...


But they're not.

This is a national security issue. In fact legislation should be passed in congress to block this and future energy and high tech purchases. I still cant believe the IBM deal was ok'd. That was bs too.

Why? Does IBm's PC unit have technology that is vital to US security?

Does Donald Rumsfeld have an IBM laptop?

Does the US government own the majority of UNOCAL? If not, then what happened to the free market principles of the American way of life?

If they want to prevent the sale to CNOOC then they should become the majority owners. But is what the American people want their tax dollars spent on?

I don't see why the Americans find the Chinese so intimidating. They've been pushing the development and anti-communism agendas for ever, now that it has all worked out, what's the problem? :rolleyes:

Why? Does IBm's PC unit have technology that is vital to US security?

Does Donald Rumsfeld have an IBM laptop?

I wouldnt give them any type of advantage thats all.

Does the US government own the majority of UNOCAL? If not, then what happened to the free market principles of the American way of life?

If they want to prevent the sale to CNOOC then they should become the majority owners. But is what the American people want their tax dollars spent on?

Exactly.

Does the US government own the majority of UNOCAL? If not, then what happened to the free market principles of the American way of life?

If they want to prevent the sale to CNOOC then they should become the majority owners. But is what the American people want their tax dollars spent on?


There are national security issues at stake in my opinion and in the opinion of many others. The government has to approve the sale of certain companies. This is one of them that shouldnt go through.

It would be very well if China bought it IMHO.


*Yes i am a commie, and i couldn't give a flying fart in space less if you liked it or not*

The more power to China, the better.


POWER TO CHINA!

Common sense just doesn't stand a chance against blind hatred.

There are national security issues at stake in my opinion and in the opinion of many others. The government has to approve the sale of certain companies. This is one of them that shouldnt go through.

Nice free market economy policy that one. It is a totalitarian state that defines whether a company can be sold or not, with the possible exception of anti-trust laws.

National security is a card that was played by the fascists in Germany in the 1930s. Do you want to go the same way?

For the Chinese, it's good for them. Control of oil supply for the future.
For the USA, it would be bad. Oil is going to be difficult commodity to secure in the future and the way prices are rising, keep all you can.

America, the great freemarket nation, can't just call national security on every business deal it doesn't like. Why aren't they happy that china is moving away from communism?

I hope you aren't so blinded by anti-americanism that you'd prefer the dominant power was a human rights abusing monster fascist oligarchic dictatorship.
Actually, I like America, generaly. I also have a sense of humour. Please purchase one for yourself.

Actually, I like America, generally. I also have a sense of humour. Please purchase one for yourself. Lol, sorry if I appeared standoffish, I just grow tired of pointless anti-U.S. sentiment. It discredits the poster and weakens the power of those who have valid arguments. Yes, their government can make moronic decisions, but they're still better than most.

Given that the USA is constantly bashing developing nations into adopting extreme open market policies I say it's about time the USA realised what it means to be free market.
Ah, but the problem is any business deal involving china doesn't really involve free markets. Strategically it's simply a bad idea as they could in theory shut down that part of the oil supply coming to the US in a time of war..

Ah, but the problem is any business deal involving china doesn't really involve free markets. Strategically it's simply a bad idea as they could in theory shut down that part of the oil supply coming to the US in a time of war..

Thats the only sinsible anti-CNOOC argument.

Yes, because the company made a legitimate deal which was agreed upon by the shareholders. This will probably help oil prices because China could build refineries and increase capacity far easier than the US can, so it could be a win-win for both sides.

The argument that this would enable China to cut off our oil isn't very strong, because the real danger would be from OPEC cutting off our supply like they did in the 1970's. Secondly, the SPR is full, so the US would have years worth of stockpiled oil for industry and the military.

Heck! If we're real capitalists, we'll let the market decide. :cool:

I hope you aren't so blinded by anti-americanism that you'd prefer the dominant power was a human rights abusing monster fascist oligarchic dictatorship.

oligarchic dictatorship is an oxymoron.

however, back on point, i have no problem with the chinese buying out this company, if they have the money they can spend it as they like. in my opinion, all the arguments about china being unstable are nonsense, as an oligarchic state you don't get all the policies flip-flopping after elections, and you don't get any of the personality-cultism or doublethink associated with autocracies (as proof of this, ask a layman for the name of the chinese premier, he can't be too powerful if you don't even know his name).
china is incredibly stable and will continue to be so until the economy plateaus, at that point we will probably see political and social liberalisation. in this way china is very predictable, the establishment has had a clear goal ever since the realisation of tiananmen square, a goal to end 'the century of shame' and return the middle kingdom to its rightful place, and according to beijing's political scientists this will eventually require the introduction of a democratic element to china's constitution.
another factor that makes china a beneficial superpower is the fact that china does not engage in war, this isolationalist attitude would give a third option to the third world countries whose only options are to join the west's crusade for freedom or to lose support from the global powers.

We have to protect our oil and Chevron (the company that originally was buying UNOCAL) from China.

Not only do we need to stop them from buying UNOCAL, but we need to tariff all their plastic shit and put them out of business.

China isn't fascist, it may be authoritarian, but fascism is free-market friendly, calling China this is ridonculous.

Lol, sorry if I appeared standoffish, I just grow tired of pointless anti-U.S. sentiment. It discredits the poster and weakens the power of those who have valid arguments. Yes, their government can make moronic decisions, but they're still better than most.

Meh, it's all good. I don't like the constant US bashing either. It means no one really pays much heed when people protest when the US really does do the rare really bad thing. I agree with you, the real issues just get lost in the mud slinging.

My father escaped from East Germany in '59, so I have a very good idea what oppressive regimes are really all about. I do, however, have much more respect for the culture of China than I do the US culture. Just my opinion, mind you.

We have to protect our oil and Chevron (the company that originally was buying UNOCAL) from China.

Not only do we need to stop them from buying UNOCAL, but we need to tariff all their plastic shit and put them out of business.

China isn't fascist, it may be authoritarian, but fascism is free-market friendly, calling China this is ridonculous.

Fine. But don't claim then that you are defending the free market, freedom of choice or the basic principles of a capitalist economy.

Not only do we need to stop them from buying UNOCAL, but we need to tariff all their plastic shit and put them out of business.

China isn't fascist, it may be authoritarian, but fascism is free-market friendly, calling China this is ridonculous.

So we could kill our economy and drive up consumer prices? It's labor unions that drive up our costs and make the US unable to compete. GM cars would be $5000 less if the UAW healthcare costs were eliminated, and then we could easily compete with Japan and China. Get rid of unions, and the US is in excellent shape.

Tarriffs do not work. They only make the situation worse.

This is depressing, I hope you are joking. Much as I may disagree with a large portion of the U.S.A.'s foreign policy, they're still waaaaaay better than any half-baked oppressive nuthouse of a nation.

Here's a fair point of comparison.

- The U.S.A. does something it's people disagree with. There are protests, elections come around, the ruling party is voted out.

-China does something it's people disagree with. Some people try to speak out against it, but they are quickly either imprisoned, tortured or shot. If there are any protests, the movement is crushed, mass arrests take place and there is heavy bloodshed. Unarmed civilians die by the bucketload.
good to see at least one person with a degree of common sense.

China's government itself doesn't imprison, torture, or shoot people anymore. I know, cause I am chinese, and they simply send you letters tellign hwo wrong you are and stuff, and then probably some propoganda. It looks bad to international standards, so the worst they can do to you now is get rid of all your disagreements, and place you in prison on some trumped up charges. Even worst, if you're under jurisdiction from a guardian, they'll suggest military enlistment.

China's government itself doesn't imprison, torture, or shoot people anymore. I know, cause I am chinese, and they simply send you letters tellign hwo wrong you are and stuff, and then probably some propoganda. It looks bad to international standards, so the worst they can do to you now is get rid of all your disagreements, and place you in prison on some trumped up charges. Even worst, if you're under jurisdiction from a guardian, they'll suggest military enlistment.

Wait! Didn't you say they don't do that anymore?

Sure why not they control almost every other industry of ours.

Wait! Didn't you say they don't do that anymore?

Yes, yes I did. That means you're stuck under a basic punishment, not a gloomy atmoshpere with ugly pipes....which actually is what their prisons are uncannily like, actually, so scrap the imprison part. But they are unable to shoot you or torment you.

Shoot you/Torment you = Bad Media -------> Change Media ---------> Looks bad/Desperate

So we could kill our economy and drive up consumer prices? It's labor unions that drive up our costs and make the US unable to compete. GM cars would be $5000 less if the UAW healthcare costs were eliminated, and then we could easily compete with Japan and China. Get rid of unions, and the US is in excellent shape.

Tarriffs do not work. They only make the situation worse.
Get rid of unions? Why, can't bargin with them? Unions are just a collective group of workers, and they get the health care costs the same way that everyone else does- from the employer. Blame the employer for the costs, not the union.

Should China be allowed to buy UNOCAL?

In two words, Hell Yes!

Get rid of unions? Why, can't bargin with them? Unions are just a collective group of workers, and they get the health care costs the same way that everyone else does- from the employer. Blame the employer for the costs, not the union.

No, they are a hierarchy dominated by a union leader. The individual worker has little say or influence in any union policy.

Because their demands are often too expensive and too comprehensive. GM is on its last legs, but they refuse to make any deals with the company about healthcare. They are sacfrificing the employment of all of the other workers to save their healthcare. If GM goes under, then what?