Unocal's board of directors has endorsed a sweetened, $17 billion takeover bid from Chevron, rejecting a higher offer from one of China's state-owned oil companies.

The decision by Unocal's board late Tuesday could signal an end to China's most ambitious attempt yet to acquire an American corporation. The takeover battle also had sparked debate about U.S. security concerns with the communist nation.

Chevron boosted its offer by $2 per share to $63 per share — or $17 billion overall — shortly before the Unocal board met Tuesday night. CNOOC Ltd., an affiliate of China National Offshore Oil Corp., has an $18.5 billion offer on the table for the El Segundo-based company. Unocal's board had previously also endorsed Chevron's lower offer over the higher CNOOC bid.

In a joint statement with Chevron, Unocal's board urged stockholders late Tuesday to accept the amended bid at a shareholders' meeting scheduled for Aug. 10.

But a spokesman for China's third-largest oil company vowed early Wednesday that CNOOC was not ready to drop out of the bidding war.

Posted by: Jonathan Singer / 5:19 AM | Basie! Home