Shareholders of Unocal, the average U.S. oil and gas company, saw their share prices rise since the takeover rumors appeared in early 2005. Trading in the low US $ 40 earlier in the year, competing firms to outdo each other by taking the price of the shares of Unocal above U.S. $ 60 by mid-summer. International oil companies, flush with cash thanks to high oil prices and low interest to replace reserves, increasingly sought to acquire strategic assets. Unocal in significant natural gas reserves in Asia, combined with experience in deepwater drilling, have made it particularly attractive for CNOOC, China's state-controlled offshore oil companies. Although CNOOC trumped earlier proposals from US $ 67 per share, all cash deal worth $ 18.5 billion, the company faced stiff opposition from Washington and Wall Street. "Hide
by Mark Stimson, Ka-Fu Wong Source: University of Hong Kong, 28 pages. Publication Date: Aug 04, 2006. Prod. #: HKU588-PDF-ENG
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