CNOOC Ltd. will press ahead with its takeover bid for Unocal Corp. despite a planned shareholder vote on a competing offer by Chevron Corp., which Unocal says should be accepted, the Chinese firm's chairman said Thursday. In an interview with The Associated Press, Fu Chengyu expressed confidence that the state-controlled oil firm will persuade Washington the proposed US$18.5 billion (¤15.3 billion) deal for the ninth-largest U.S. oil company doesn't pose any risks to American national security. «We'll continue to talk in negotiations, and we will meet with government figures for the (security) review,» Fu said. «I believe that our superior offer, which will help shareholders, this will convince the U.S. government this is a good offer.» Fu's comments came after Unocal sent shareholders proxy materials Wednesday with a letter reiterating its board's recommendation to accept the US$16.6 billion (¤13.8 billion) offer by Chevron. CNOOC says its all-cash offer will benefit the United States by paying Unocal shareholders more and causing fewer job losses. Chevron has countered that its offer already has received regulatory approval and a switch to CNOOC could require lengthy new reviews. Fu wouldn't say whether CNOOC might raise its offer. «I think this is a kind of strategy that shouldn't be discussed,» he said. «We don't have firm plans as to what we'll do. But we do have something that we are developing.» Fu rejected suggestions that CNOOC, which is based in Hong Kong but 70 percent of whose shares are owned by a Chinese government oil company, was acting on behalf of China's government. «This company is driven purely by economics,» he said. «If there's a good market, the more we can supply, the more value we can add for shareholders. Not because the government asked us to do it, but because we believe it's the profitable thing to do.» He said that although CNOOC's parent company is promising to supply US$7 billion (¤5.5 billion) of the proposed purchase price, none of that money would come from the Chinese government. «Not a cent,» he said. --mor 1303 Local Time 1003 GMT
