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This is starting to look bad. Now, CNOOC is meeting with Unocal’s board to get them to change their mind and support CNOOC’s bid.

On Friday, Senator Dorgan said that he is going to introduce legislation that would block the deal no matter what. It’s hard to say how much support this bill would have.

What’s not being said is that CNOOC is simply offering too much for Unocal. This is a clear sign of two separate tops. One is that the oil market is too hot. The other is that China has way too many dollars. Bear in mind that CNOOC’s deal is all cash, while ChevronTexaco is offering stock and cash.

I fail to see how CNOOC’s ownership of Unocal is a threat to our national security? They can’t take the oil and run off. Most of Unocal’s oil is in Southeast Asia anyway. Why is Congress so worried now? For the last few years, the Chinese government has been gobbling up U.S. Treasuries. Perhaps they want a little more than 4%. Of course, paying $18 billion for Unocal, they’ll be lucky if they get 4%.

Posted by edelfenbein at July 16, 2005 5:38 PM