By CBS MarketWatch
DALLAS (CBS.MW) -- Shares of Unocal Corp. jumped close to 8 percent higher Thursday after it was reported that a Chinese oil and gas producer may be eyeing the company.
Unocal's stock finished at $44.34, up $3.15, or 7.7 percent.
CNOOC Ltd. , in a bid to increase production and its natural gas business, is pursuing the acquisition of Asian assets from a foreign oil company and may be interested in Unocal /zigman2/quotes/218913556/composite UCL +1.12% , according to a news report.
Citing sources, Reuters reported that CNOOC is ready to spend some of its $3 billion on acquisitions. The company recently generated $1 billion in proceeds from a bond issue.
CNOOC trails rivals PetroChina /zigman2/quotes/204979431/delayed HK:857 -0.64% and Sinopec Corp. /zigman2/quotes/209045777/delayed UK:SNP 0.00% in China. The country has seen enormous growth in demand for oil as its economy has expanded.
Unocal, based in El Segundo, Calif., primarily produces oil and gas in North America and Asia. A spokesman for the company said it doesn't comment on market speculation.