Energy executives close to the negotiations said the Unocal board yesterday voted to accept Chevron’s 11th-hour higher cash-and-stock bid, up from the original US$16.6 billion, after deciding the all-cash CNOOC bid was too risky politically, according to Reuters.

The Unocal board decision could end the takeover battle that has stirred significant debate in Washington about security concerns and trade policies with China, though it was still possible CNOOC could also increase its bid.

Many US lawmakers, worried that a takeover of Unocal by state-owned CNOOC could threaten US national security, are pushing for a review by the Bush administration.

But President George W Bush has declined to take a stand on the CNOOC issue, saying he was waiting for the Committee on Foreign Investment in the United States (CFIUS), a multi-agency panel chaired by the US Treasury, to complete its review.

Chevron and CNOOC have been battling for control of Unocal for the past month and their fight may intensify even further as the August 10 deadline for Unocal shareholders to accept or reject offers looms larger.