Oil giant Unocal is rethinking its dealings with a Chinese
consortium after U.S.-based Chevron upped its buyout bid by $1 billion on
Wednesday, July 20.
The board of directors with
Unocal – America’s second largest oil company – said they’d rather see Unocal
purchased by Chevron than by China’s state-run CNOOC Ltd. the Washington
That announcement comes after Chevron upped its bid from $16
billion to $17 billion, compared to China’s $18.5 billion bid. Despite the higher
foreign offer, Reuters reports that Unocal board members believe U.S.
regulators would reject a sale to China based on national security concerns.
Unocal stockholders are scheduled to vote on the sale to
Chevron at a meeting on Aug. 10.