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Essay / Research Paper Abstract
This 8 page paper examines the acquisition of Unocal by Chevron, looking at the pertinent issues of the take over bid including the value and form of the offer and counter offers, other interested parties, the view of Unocal management and employees to the take over bid. The bibliography cites 7 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEchevronUn.rtf
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Unformatted sample text from the term paper:
transaction to be taking control of the Unocal company assets and employees. It is acquisition activity with the aim of increasing market share by acquiring a company that has complimentary
assets and areas of operation, with a potential benefit of increasing levels of synergy as well as a market share. From statements made by Chevrons management the assets of Unocal
were attractive and it appears that they believed they were under utilized; chairman and chief executive of Chevron, David J. OReilly, stated; "Chevron has proven technical and financial capabilities
to customize the full value of Unocals world-class assets, and Unocals talented employees worldwide can enhance our organizational capability" (quoted Off Shore Source, 2005). From this it appears that Chevron
believed Unocal could be managed much more effectively and I value to share forms and operations. The potential for economies of scope and scale will also part of the motivation
for this type of merger and acquisition activity, where dominant company is trying to increase its dominance, as the combined company will have an approximate output of 2.8 million barrels
of oil equivalent everyday (Off Shore Source, 2005). It is not only to short-term levels of production which are formed gain from the acquisition, by acquiring Unocal, Chevron will have
significantly better reserve levels seen those reserve levels, based on 2004 reporting, increased by in excess of 15% (Off Shore Source, 2005). Access and expansion within international markets has been
a strategy of Chevron, the key operational areas of Unocal are a strong strategic fit for share forms are in corporations areas, with Unocal strong in the US Gulf of
Mexico, the Asia-Pacific and Caspian regions (Off Shore Source, 2005). Following the merger the company will be generating 20 percent of the production within the Asia-Pacific region, which is projected
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