Buying the PC company from IBM is one thing, buying UNOCAL (refining and distribution, or "downstream" oil company) is quite another. This bid probably fails, but it is a sign of things to come.

Chinese Oil Producer Makes Bid For Unocal

CNOOC's Unsolicited Proposal Tops Price Accepted From Chevron

By Gary Gentile

Associated Press

Thursday, June 23, 2005; Page D01

LOS ANGELES, June 22 -- China's third-largest oil producer made an unsolicited $18.5 billion bid Wednesday for oil-and-gas company Unocal Corp., which has already agreed to be acquired by Chevron Corp. for $16.6 billion.

Unocal acknowledged the offer from state-run CNOOC Ltd., an affiliate of China National Offshore Oil Corp., to buy the company for $67 a share in cash. Unocal, based in El Segundo, Calif., said it would evaluate the bid but that its board's previous recommendation to shareholders to accept the Chevron offer remained in place . . .

Full story found at: washingtonpost.com/wp-dyn/content/article/2005/06/22/AR2005062202309.html