Tuesday, August 02, 2005

My Way News - CNOOC Expected to Drop Bid for Unocal

My Way News: "SHANGHAI, China (AP) - Hong Kong-traded shares in CNOOC Ltd. (CEO)
gained sharply Tuesday following a report that the Chinese offshore oil
company plans to soon drop its $18.5 billion offer for Unocal Corp."

This sounds like good news if it is true. The report is very short and gives a superficial view of the problems with the attempted Chinese acquisition. The national security problems highlighted in the congressional hearing on the CNOOC bid for Unocal have been put onto the front burner and so has the entire issue of Chinese strategic economic moves which are hostile to US interests. The Chinese undoubtedly do not wish this issue to be fuurther highlighted and the United States to become motivated to pay attention to their efforts and to do something about it. Therefore it's only logical that this particular buyout attempt will be dropped with the desire to move attention away from Chinese strategic moves to secure their own energy supply within their overall strategic strategy. As witnessed by the congressional hearing the moves being made by China deserve the scrutiny they are now getting and dropping the bid for Unocal won't stop that scrutiny.


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