Unocal still in deliberation on CNOOC bid

Unocal’s board of directors met again on Sunday night to consider whether to back CNOOC’s takeover bid for the California-based oil company or whether to stand behind its acceptance of Chevron’s lower bid, but so far there has been no word of what decision has been reached, or if there even has been a decision on the matter.

Part of Unocal’s hesitance to accept the CNOOC bid is likely driven by the possibility that the US government might not approve the deal, especially in the face of increasingly vocal opposition in Washington.

Meanwhile, some shareholders have expressed frustration over the situation, saying that Unocal should be more aggressive in trying to get one suitor or another to raise their bid. Analysts say that it appears that neither company wants to be the first to add to their offer and begin a bidding war.

Over the past days, such a contest has come to appear more and more likely, raising shares in Unocal to around $65 per share, 10 percent higher than the Chevron offer. Chevron has so far said that it will not raise its offer, but some analysts expected it to do so as the August 10 shareholder vote by Unocal draws near.