Outcome of Unocal vote uncertain as CNOOC bid remains

According to a timeline filed with the US Securities and Exchange Commission on Monday, Unocal was close to accepting CNOOC’s takeover bid despite its political risks until Chevron came through with a rise in its own bid for the California-based oil company.

The filing shows that Unocal’s chief executive, Chuck Williamson, told Chevron on July 17 that it was inclined to reverse course and support CNOOC’s bid unless Chevron would raise its bid.

That notification came after CNOOC’s chairman declined a request from Williamson to raise their bid after Williamson had told CNOOC that an increase in its bid would likely result in Unocal’s support for that bid.

The filing is part of a revised proxy statement filed by Unocal in advance of a scheduled shareholder vote on August 10 concerning the Chevron bid.

Even though Unocal is backing the Chevron bid, the outcome of the vote is uncertain, especially since the release on Sunday of a letter from the head of an asset management company that holds over 1 million Unocal shares.

That letter demanded that Unocal consider the CNOOC bid and warning that shareholder damages could run in the billions of dollars if it does not do so.

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