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An investor gestures as he looks at an electronic board showing stock information at a brokerage house in Huaibei, Anhui province, October 25, 2012.
An investor gestures as he looks at an electronic board showing stock information at a brokerage house in Huaibei, Anhui province, October 25, 2012.
(Stringer/Reuters)

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Investors buying CNOOC are crazy – like a fox

Why would a sane individual invest in a Chinese state-owned enterprise? Consider CNOOC, China’s largest offshore oil company. This year, it made the largest ever bid by a Chinese oil and gas group with its $15-billion offer for Canada’s Nexen. The deal awaits approval but the price is a 60 per cent premium to Nexen’s undisturbed share price. Investors might be forgiven for thinking that CNOOC cares more about an agenda to secure energy than shareholders.