China-US tension mounts over Unocal takeover bid
- Thread starter mrmom2
- Start date
I wouldn't fret over this too much. I don't know if it will happen or not. My guess it doesn't.
CNOOC is offering $67 in cash. Chevron is offering $65 in cash and stock. I believe Unocal's board has already accepted Chevron's offer. CNOOC had been involved in the initial bidding but lost. This was a late offer.
CNOOC is controlled by the Chinese government. A strong argument can be made that if our own government isn't going to buy our own oil assets, then why would we let a foreign government? There's also a lot of China-bashing noise coming from Congress because of the currency peg and China's entry into the WTO, which has eliminated tariffs on Chinese textiles. This issue plays into the China bashing. CNOOC is negotiating with the US government to allow them to buy Unocal then sell the US oil fields to another company. That would let CNOOC keep the Asian assets, which accounts for 40% of Unocal's asset base.
Its interesting to see who has come out in favour of it. The CEO of Exxon has said the US government shouldn't block such a takeover because Americans invest a great deal abroad and such a move could mean American firms will be blocked out of foreign fields. Also, the workers have come out in favour of CNOOC because CNOOC has said it won't lay off a single worker while Chevron will.
CNOOC is offering $67 in cash. Chevron is offering $65 in cash and stock. I believe Unocal's board has already accepted Chevron's offer. CNOOC had been involved in the initial bidding but lost. This was a late offer.
CNOOC is controlled by the Chinese government. A strong argument can be made that if our own government isn't going to buy our own oil assets, then why would we let a foreign government? There's also a lot of China-bashing noise coming from Congress because of the currency peg and China's entry into the WTO, which has eliminated tariffs on Chinese textiles. This issue plays into the China bashing. CNOOC is negotiating with the US government to allow them to buy Unocal then sell the US oil fields to another company. That would let CNOOC keep the Asian assets, which accounts for 40% of Unocal's asset base.
Its interesting to see who has come out in favour of it. The CEO of Exxon has said the US government shouldn't block such a takeover because Americans invest a great deal abroad and such a move could mean American firms will be blocked out of foreign fields. Also, the workers have come out in favour of CNOOC because CNOOC has said it won't lay off a single worker while Chevron will.
RE: China-US tension moun
What's the matter Toro...afraid of letting others into the open market?
What's the matter Toro...afraid of letting others into the open market?
Re: RE: China-US tension moun
Don't be silly.
I think foreign investment is great. But I have a problem with a foreign government buying the assets just like I have a problem with a domestic government buying the assets. But given the lesser of two evils, I'd rather have the government of Canada buying oil fields in Canada than the government of China. The problem with that argument though is that for most of its history, PetroCan has had investments abroad while the government of Canada has had an investment in PetroCan.
Reverend Blair said:
Don't be silly.
I think foreign investment is great. But I have a problem with a foreign government buying the assets just like I have a problem with a domestic government buying the assets. But given the lesser of two evils, I'd rather have the government of Canada buying oil fields in Canada than the government of China. The problem with that argument though is that for most of its history, PetroCan has had investments abroad while the government of Canada has had an investment in PetroCan.
I think not said:
Yes, but it has a long history of letting it in too. Heck, all the T-Bonds are owned by foreigners.
RE: China-US tension moun
It still sounds to me like you are afraid of an open market, Toro. If the market works the way you say it does, then it doesn't matter whether it's the Chinese government or the Rockefellers in charge of the oil. It's an international market, after all, and China is just one player.
It still sounds to me like you are afraid of an open market, Toro. If the market works the way you say it does, then it doesn't matter whether it's the Chinese government or the Rockefellers in charge of the oil. It's an international market, after all, and China is just one player.
Re: RE: China-US tension moun
I relish the market. The market is the best mechanism for creating wealth. If CNOOC were privatized, I would be fully supportive in their attempt. I'm not sure about this issue though because I don't like foreign govenrments investing outside of their home countries, or, for the most part, even inside their own countries. But on the other hand, lots of international oil companies are or have been at least partially owned by government, including PetroCan, Total, BP, Gazprom, ENI, etc. On a list of my top 10,000 worries, CNOOC buying Unocal doesn't get on. I was merely offering colour to this event.
Reverend Blair said:
I relish the market. The market is the best mechanism for creating wealth. If CNOOC were privatized, I would be fully supportive in their attempt. I'm not sure about this issue though because I don't like foreign govenrments investing outside of their home countries, or, for the most part, even inside their own countries. But on the other hand, lots of international oil companies are or have been at least partially owned by government, including PetroCan, Total, BP, Gazprom, ENI, etc. On a list of my top 10,000 worries, CNOOC buying Unocal doesn't get on. I was merely offering colour to this event.
RE: China-US tension moun
You're afraid of your own market. There is, according to your theories, nothing to be afraid of. The Chinese government is competing in the same market as you. That they are huge and unaccountable and will not discuss their motives should have no bearing. Hell...Walmart doesn't have to and Exxon doesn't have to.
So what's the deal here? Are you guys afraid of truly free markets or are you prejudiced against the Chinese? You have two choices, tell the truth.
You're afraid of your own market. There is, according to your theories, nothing to be afraid of. The Chinese government is competing in the same market as you. That they are huge and unaccountable and will not discuss their motives should have no bearing. Hell...Walmart doesn't have to and Exxon doesn't have to.
So what's the deal here? Are you guys afraid of truly free markets or are you prejudiced against the Chinese? You have two choices, tell the truth.
RE: China-US tension moun
I think you're right. I shouldn't be worried about it at all. Or at least, not be the 13,500th of the list of things I worry about.
CNOOC is 70% owned by the government of China BTW.
I think you're right. I shouldn't be worried about it at all. Or at least, not be the 13,500th of the list of things I worry about.
CNOOC is 70% owned by the government of China BTW.
RE: China-US tension moun
Prove that you aren't owned by the Republicans. Prove that you aren't posting for the benefit of your party. Prove you aren't posting for the benefit of your employer. Prove that the gism on your breath didn't come out of George Bush.
Prove that you aren't owned by the Republicans. Prove that you aren't posting for the benefit of your party. Prove you aren't posting for the benefit of your employer. Prove that the gism on your breath didn't come out of George Bush.