CNOOC Withdraws Unocal Bid

After much political controversy surrounding the bid for California based Unocal, the Chinese company, CNOOC, has withdrawn its $18.5 billion bid ($67/share). CNOOC is reported to have explained the withdrawal directly resulted from the political environment in the United States, posing "a level of uncertainty that presents an unacceptable risk to our ability to secure this transaction." The high risk levels resulting from political and economic control deter both foreign and domestic investment in the U.S.