California State Controller Steve Westly called on the CalPERS and CalSTRS boards to oppose the China National Offshore Oil Co.'s bid to acquire Unocal Corp.
"This proposed merger raises legitimate concerns that oil will be diverted away from this country to meet the needs of China's economy," Mr. Westly said in a news release. The controller, who has announced his plans to run for governor of California, also said the proposed purchase faces political and regulatory hurdles and questioned CNOOC's business practices. "The Chinese government, which owns 70% of CNOOC, procures oil from Sudan. That's not the way we want our companies to do business," he said in the statement.
The $187 billion California Public Employees' Retirement System, Sacramento, owns 1.2 million shares of Unocal valued at more than $80.14 million. The $126.6 billion California State Teachers' Retirement System, Sacramento, owns 886,639 Unocal shares valued at more than $50.5 million.