CNOOC eyes higher Unocal bid - report
(Agencies)
Updated: 2005-07-13 09:35

In another, a man dressed in a home-plate umpire's uniform stands beneath the words, "I don't call it until I've seen it," and it implores readers to "learn the facts" before forming an opinion of the deal. The ad mentions CNOOC's previous pledges to protect the jobs of Unocal's American-based work force as well as its promise to keep the California-based company's oil in the U.S.

The House Armed Services Committee plans a hearing Wednesday on the proposed transaction.

Members of Congress have complained that CNOOC's bid for Unocal is part of a broader strategy by China to hoard energy supplies before they run out. Another concern is that the United States might unintentionally hand over technology or assets that have military value.

The House registered its discomfort last month by approving a resolution that asks the president for an immediate and thorough review if Unocal accepts CNOOC's offer.

On Tuesday, two senators asked U.S. Secretary of Commerce Carlos Gutierrez and Trade Representative Robert Portman to look into whether Beijing's financial backing of the deal violates World Trade Organization rules.

Sens. Kent Conrad and Jim Bunning said in a letter to the trade officials that roughly 80 percent of the $16 billion in outside financing that CNOOC needs will come in the form of no-interest or below-market-rate loans from state-owned entities, including banks and CNOOC's parent company.

Many others in Congress have also said CNOOC has an unfair advantage.

CNOOC Chairman Fu Chengyu denies that his company is acting on behalf of China's government. In addition, the company has said it is willing to shed assets and take other steps necessary to address national security concerns.

"I think it's going to be important until Congress goes out of session (later this month) that people start seeing the facts on this and not just the fantasies," said Mark Palmer, managing director of Public Strategies Inc., which is handling public relations for CNOOC in Washington and designed the ads.