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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Chevron bid for Unocal gains ally

Associated Press

SAN FRANCISCO – A major investment advisory firm on Monday recommended that Unocal Corp.’s shareholders accept Chevron Corp.’s $17.5 billion takeover bid instead of entangling themselves in the political turmoil facing a slightly higher offer from China’s government-owned CNOOC Ltd.

The endorsement of Institutional Shareholder Services, or ISS, provides San Ramon-based Chevron and El Segundo-based Unocal with a little more firepower as they meet with investors this week to rally support for their proposed marriage. Unocal’s board has already voted in favor of the Chevron offer.

Many of the nation’s largest institutional investors, including public pension funds and mutual funds, rely on ISS’ opinions to help them decide on how to vote on difficult decisions that come up for shareholder votes. Another large shareholder advisory service, Glass, Lewis & Co., expects to distribute its analysis of Chevron’s bid later this week.

A shareholder vote on the Chevron bid is scheduled for an Aug. 10 meeting in Los Angeles.

Unocal Chairman Charles Williamson said he was “extremely pleased” to win ISS’ support. A CNOOC spokesman in New York didn’t immediately return calls Monday.

ISS’s blessing of the Chevron’s stock-and-cash offer – valued at $63.71 per share Monday – represents another blow to CNOOC and its all-cash bid of $67 per share, or $18.4 billion.