Following up on Edward’s post from last month.

Chinese interest has gained Unocal’s shareholders at least $400m extra from Chevron and its shareholders. Whether having regulatory clearance is worth $1.5bn (the remaining difference between the Chevron and CNOOC bids) is an open question. Since Unocal closed at $64.99 per share yesterday, $1.99 per share above Chevron’s bid, the market clearly expects a higher offer from Chevron or a choice in favor of CNOOC.

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. …

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.

More.