Thursday, July 21, 2005
So, China did not get to buy (and probably dismember) Unocal. Instead, they start to look at other US Oil companies. I'm guessing that they were on the list to start with and they are just progressing with what they would have done next anyways:
- Cnooc Ltd., China's third-largest oil company, may abandon its effort to buy Unocal Corp. and instead seek other U.S. oil producers such as Marathon Oil Corp., Amerada Hess Corp. or Murphy Oil Co., investors and analysts said.
U.S. lawmakers have threatened to block Cnooc's bid, calling Chinese ownership of a U.S. oil company a threat to the economy and national security. A decision by Cnooc to seek another U.S. oil producer might heighten political tensions. China today addressed one dispute with the U.S. by allowing its currency to strengthen against the dollar.
Cnooc might go after Houston-based Marathon Oil, the fourth- largest U.S. oil producer, if it abandons or loses Unocal, which is the eighth-largest, Leeb said.
Other takeover candidates for a Chinese company might be Amerada Hess or Murphy Oil, said Louis Gagliardi, an analyst with John S. Herold Inc., an oil industry research firm in Norwalk, Connecticut.