Cnooc is likely to abandon its bid for US oil producer Unocal Corp, The Wall Street Journal reported. While Cnooc could sweeten its US$18.5bn cash bid, there is a far greater likelihood that Cnooc would walk away from the bid, unnamed sources close to the deal said. The Unocal board has accepted Chevron's bid to buy the company for US$17.5bn in cash and Chevron stock. Unless Cnooc raises its bid, Unocal shareholders are likely to approve the Chevron deal in a vote scheduled for Aug 10 because Cnooc's offer is viewed as less valuable because of its political liabilities, despite the higher nominal bid.
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