Tuesday, August 2, 2005
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Chevron wins the rent-seeking war
David Barboza reports in the New York Times that the China National Offshore Oil Corporation (CNOOC) has withdrawn its offer for Unocal:
Now I don't doubt that a great deal of hostility towards CNOOC's takeover bid had to do with a fear of China's rising power -- but Barboza's story suggests that it also might have been because while Chevron did not outbid CNOOC for Unocal, they did outbid CNOOC for much Congress:
Chevron played this game well -- they spent way less that the $1 billion gap between their offer and CNOOC's, but by pushing Congress in a direction it probably wanted to go anyway, still got Unocal.
Whether Unocal's shareholders benefited is another question entirely.posted by Dan on 08.02.05 at 12:08 PM