Buyout plan

Singapore, July 13 (Reuters): The board of China’s CNOOC Ltd is meeting on Wednesday to fine-tune its $18.5-billion offer for Unocal as it seeks to win the US oil producer’s support for a takeover, a person close to the situation said.

Among changes being considered is depositing funds in the United States so that Unocal could make claims if CNOOC backed out of a deal.

CNOOC’s board will also discuss strategy in case Unocal’s board continues to recommend Chevron’s offer or if Chevron sweetens its bid before the meeting on August 10 when Unocal shareholders are to vote on its bid, the person close to the situation said.

CNOOC management will obtain approval from its board to “respond tactically” and immediately if Unocal rejects its bid or Chevron sweetens its offer, according to the source, who spoke on condition of anonymity. “Clearly, CNOOC has to consider something in that context. That’s all tactical discussion.”

In a revised offer to be delivered to Unocal’s board, which will meet on Thursday to discuss whether to back the Chinese bid, CNOOC will guarantee it can meet all US national security-related requirements, the person said.

“It is confident it’ll satisfy and put in place all those terms that should give Unocal a high degree of confidence in relation to the closing conditions,” the source said.