CNOOC considers raised bid for Unilocal

The board of directors of CNOOC will meet on Wednesday to consider changes to its bid for US oil company Unocal. Besides looking to alter its bid to conform to conditions Unocal has set down before it will consider CNOOC’s bid, such as maintaining pension benefits for all of Unocal’s employees and promising to dispose of Unocal’s US assets if regulators require such a move, the Chinese company is also said to be considering raising its offer to more than its current bid of $67 per share in cash.

CNOOC and Unocal have been in talks since the Chinese company made its bid public in June to determine how CNOOC might alter its bid to make it more attractive to Unocal. Meanwhile, Unocal’s board of directors will also meet on Wednesday to consider whether to continue to support Chevron’s bid or to transfer their support to the higher CNOOC bid. It is possible, however, that Unocal will decide not to make a decision on the issue right away.