Congressmen believe Bush should stop Cnooc's potential bid for Unocal (UCL)

by: Michael McAllister

Citing security concerns, two US congressmen wrote a letter to President Bush to review Cnooc's potential bid for Unocal (ticker: UCL).  An article today in the WSJ (paid subscription required) reports that two congressmen are concerned that Cnooc could outbid Chevron (ticker: CVX) for Unocal.  Bush could block the deal enforcing a 1988 law.  The letter points to concerns believing that Chinese control of "US assets" would be detrimental to public security. Plus, the congressmen state that the Chinese have an unfair advantage as they can tap easy money from their treasury to fund a counter-bid. 

It should be pointed out that the congressmen are from California the state where Chevron and Unocal are headquartered.   

The assets that the Chinese are focused on are UCL's SE Asian properties.