State-owned Chinese oil company CNOOC Ltd. said Friday it filed notice with a high-level U.S. committee requesting a review of its proposed $18.5 billion cash offer for Unocal Corp., which is mulling a competing $16.6 billion offer from Chevron Corp.
CNOOC filed notice with the Committee on Foreign Investment in the United States. Under the committee’s regulations, Unocal will have seven days to respond to its questions about the proposed merger, the company said.
CNOOC said it was “confident” it would obtain clearance from the committee once the review is underway, and looked forward to explaining the deal in more detail.
“We welcome this opportunity and believe that once all the facts are known and the commercial purpose and terms of the transaction are fully understood, many initial misimpressions will be corrected, and many doubts and questions will be favorably resolved,” the company said.
The Committee on Foreign Investment was created to monitor foreign investment activity in the United States with an eye on protecting national security.
Led by the Secretary of the Treasury, the committee’s 12 members include the secretaries of state, defense, and commerce, the attorney general, the director of the office of management and budget, the U.S. trade representative, and the chairman of the council of economic advisers, according a Treasury Department Web site.
CNOOC launched an unsolicited offer to acquire Unocal in late June, topping an earlier cash and stock offer from Chevron. However, CNOOC’s proposal has faced intense scrutiny from lawmakers over national security and other concerns.
On Thursday, the House said a state-owned Chinese company taking over an American oil firm could threaten national security and asked the president for an immediate and thorough review if CNOOC purchases Unocal.State-owned Chinese oil company CNOOC Ltd. said Friday it filed notice with a high-level U.S. committee requesting a review of its proposed $18.5 billion cash offer for Unocal Corp., which is mulling a competing $16.6 billion offer from Chevron Corp.
CNOOC filed notice with the Committee on Foreign Investment in the United States. Under the committee’s regulations, Unocal will have seven days to respond to its questions about the proposed merger, the company said.
CNOOC said it was “confident” it would obtain clearance from the committee once the review is underway, and looked forward to explaining the deal in more detail.
“We welcome this opportunity and believe that once all the facts are known and the commercial purpose and terms of the transaction are fully understood, many initial misimpressions will be corrected, and many doubts and questions will be favorably resolved,” the company said.
The Committee on Foreign Investment was created to monitor foreign investment activity in the United States with an eye on protecting national security.
Led by the Secretary of the Treasury, the committee’s 12 members include the secretaries of state, defense, and commerce, the attorney general, the director of the office of management and budget, the U.S. trade representative, and the chairman of the council of economic advisers, according a Treasury Department Web site.
CNOOC launched an unsolicited offer to acquire Unocal in late June, topping an earlier cash and stock offer from Chevron. However, CNOOC’s proposal has faced intense scrutiny from lawmakers over national security and other concerns.
On Thursday, the House said a state-owned Chinese company taking over an American oil firm could threaten national security and asked the president for an immediate and thorough review if CNOOC purchases Unocal.
American despositary shares of CNOOC rose 76 cents to $60.08, while shares of Unocal rose 11 cents to $65.16 in midday trading on the New York Stock Exchange.