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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (36122)	7/16/2005 1:38:28 PM
From: Oblomov	Read Replies (1) \| Respond to of 110194

Elroy, it seems that letting CNOOC buy UCL (at least a large part of the Asian assets) is in the US interest. It would substantially reduce our trade deficit with China, and natural gas is not easily shipped overseas anyway, and over 60% of UCL's reserves are in gas. CNOOC has included in their bid the understanding that UCL would divest the assets considered to be in the US strategic interest. I think that selling the company to Chevron for cash/stock, while refusing a higher all-cash bid would be bad business, not to mention anticapitalist. I must admit that I felt at first a bit of nationalistic shock at the idea of the Chinese state-owned oil company buying a US company, but I've warmed up to the idea. China is approaching a market economy in their own manner, not the Anglospheric formulation certainly, but the remnants of their command economy will likely be sloughed off as it proves to be less agile than decentralized decision-making. However, the most likely outcome is that the bulk of the Asian assets will be sold to CNOOC, while the assets in the Americas will be sold to Chevron. JMHO...What do you think?