Expectations of a bidding war between Chevron Corp. and a Chinese oil company jockeying to scoop up Unocal Corp. grew on Thursday as the U.S. oil producer's board meets to discuss the competing bids, Reuters said in a report from New York. Chinese state-run oil company CNOOC Ltd. has already tweaked its $18.5 billion bid made last month to provide additional assurances for Unocal, and its shares fell earlier on Thursday on fears it could be forced to raise its $67-a- share cash bid. But a person familiar with the situation said no decision had been made yet on whether or when CNOOC would hike the bid and that suggestions of a $69-a-share offer were "pure speculation." For now, CNOOC has agreed to set aside roughly $2.5 billion in an escrow account that would be paid to Unocal shareholders if the Chinese firm backed out of the deal, sources familiar with the situation have said. Chevron, on the other hand, has continued to stand by its $16 billion-plus agreement signed in April, though some analysts and investors expect the company to sweeten its bid as a crucial vote by Unocal shareholders on Aug. 10 draws near. --More 2239 Local Time 1939 GMT
