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Tuesday, June 28, 2005

CNOOC Unocal Rumbles On

But don't miss this bit, Bloomberg today:

"CNOOC Ltd., China's third-biggest oil company, will borrow $7 billion from its state-owned parent at below-market interest rates to finance an $18.5 billion bid for Unocal Corp. that topped an offer by Chevron Corp.

The parent company, China National Offshore Oil Corp., will give CNOOC a 30-year loan of $4.5 billion at a rate of 3.5 percent, Chief Financial Officer Yang Hua said. The parent also provided a $2.5 billion, no-interest bridge loan, Yang said. The yield on a 30-year U.S. Treasury bond is 4.2 percent.

Obviously something important is changing.


Ivan Janssens said...

My local newspaper reports that many board members of CNOOC were against the bid for Unicol. They fear it's the wrong commercial strategy. Right or wrong, it seems that the Chinese are led firstly by commercial reasons and not political ones (as also stated by a spokesman of the foreign ministery). Maybe the U.S. should do that do?

Anonymous said...

The US is led by commercial reasons (or money)... NAFTA, DR-CAFTA, the US-Singapore Trade Agreement, followed by the soon to come Morocco trade agreement and the Middle East , and so on, and so on... these so-called "free-trade" treaties are corporate based, sponsored, written, and lobbied thru our congress, giving the treaties and the corporations behind them more global power than any single countries government. Scary times, my friends...