The board of CNOOC is expected to meet on Wednesday to approve changes to its $18.5bn takeover bid for Unocal following several weeks of negotiations with the US oil and gas group.
CNOOC directors will also consider granting management a green light to raise the state-owned Chinese company’s offer above its current level of $67 a share in cash, according to people familiar with the matter.
…… But ultimately, CNOOC may need to raise its offer above $67 per share to secure a favourable decision. CNOOC had already been poised to make an offer to acquire Unocal in late March, but withdrew from the process at the 11th hour after its non-executive directors expressed concerns they did not have enough time to review the deal.
This paved the way for Chevron to secure its deal to buy Unocal,. Meanwhile, CNOOC’s offer will be the subject of a hearing in Washington today before the house armed services committee.