Why China's Unocal Bid Ran out of Gas

Politics and a lack of focus and speed killed CNOOC's chances of success. What lies ahead for the cash-rich but wounded oil company?

With the Aug. 2 decision by China National Offshore Oil Corp., better known as CNOOC, to drop its $67-a-share offer for Unocal (UCL ), all the pieces have fallen into place for a peaceful acquisition of the independent oil and gas outfit by U.S. giant Chevron (CVX ) -- albeit at a lower bid of $64 a share.

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