Stock price helps CNOOC lick Unocal wounds

China National Offshore Oil Company Ltd (CNOOC) had the space to sweeten its acquisition offer for US oil company Unocal, but decided not to take any more political risks, a company insider said here on August 3.

“The company [gave] active consideration to that [sweetening the offer],” the insider told Xinhua under condition of anonymity. “However, the unprecedented political opposition triggered by CNOOC’s bid offer in the US had brought so much uncertainty to the risks of the transaction and the chances of success that CNOOC could not endanger the money of its shareholders to make such a deal haunted by political factors,” he said.