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Abstract

Shareholders of Unocal, a mid-sized American oil and gas firm, watched the value of their stock rise ever since rumours of a takeover surfaced early in 2005. Trading in the low US$40 share at the beginning of the year, competing firms outbid each other, taking Unocal''s per share price above US$60 by mid-summer. International oil companies, flush with cash thanks to high oil prices and facing low reserve replacement rates, increasingly sought to acquire strategic assets. Unocal''s significant natural gas reserves in Asia combined with its expertise in deep water drilling made it a particularly attractive target for CNOOC (China National Offshore Oil Corporation), China''s state-controlled offshore oil company. Though CNOOC trumped earlier offers with a US$67 per share all-cash deal valued at US$18.5 billion, the firm encountered stiff opposition from Washington and Wall Street.
Industry:
Other setting(s):
2005

About

Abstract

Shareholders of Unocal, a mid-sized American oil and gas firm, watched the value of their stock rise ever since rumours of a takeover surfaced early in 2005. Trading in the low US$40 share at the beginning of the year, competing firms outbid each other, taking Unocal''s per share price above US$60 by mid-summer. International oil companies, flush with cash thanks to high oil prices and facing low reserve replacement rates, increasingly sought to acquire strategic assets. Unocal''s significant natural gas reserves in Asia combined with its expertise in deep water drilling made it a particularly attractive target for CNOOC (China National Offshore Oil Corporation), China''s state-controlled offshore oil company. Though CNOOC trumped earlier offers with a US$67 per share all-cash deal valued at US$18.5 billion, the firm encountered stiff opposition from Washington and Wall Street.

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Industry:
Other setting(s):
2005

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