Chinese company may still bid for Unocal

BEIJING, May 10 (UPI) -- China's third largest oil firm, China National Offshore Oil Corp., is keeping mum on whether or not it will make a bid for Unocal, state media said Tuesday.

Company representatives refused to comment Monday on a report from the Financial Times saying the company will use its May 23 to 24 board meeting to come up with a counterproposal to Chevron-Texaco's $16 billion offer for Unocal.

In April, the company withdrew its bid after Chairman Fu Chengyu failed to win unanimous approval from the board of directors on his proposal to take over the ninth largest oil company in the United States.

Some board members vetoed Fu's proposal because they believe Unocal, similar in size to CNOOC, is too big for an efficient takeover, according to the China Daily.

Industry analysts also doubt if CNOOC has the resources to top Chevron's offer and pay the required $500 million breakup fee.

The Chinese company's interest in Unocal is based on its oil field concessions in Southeast Asian countries.