Energy, Utilities & Water  April 24, 2019

Occidental makes competing bid for Anadarko

Chevron Corp. (NYSE: CVX) isn’t the only corporate suitor for Anadarko Petroleum Corp. (NYSE: APC). Occidental Petroleum Corp. has upped the ante by offering to buy the Woodlands, Texas, oil company with a bid 20 percent higher than Chevron’s.

BizWest reported on April 12 that Chevron had tendered, and Anadarko had accepted, an offer that would have Chevron pay $33 billion in cash and stock, or $65 per share, for Anadarko. The Chevron offer was 75 percent stock and 25 percent cash.

The Occidental offer, which if accepted would require a $1 billion fee in order for Anadarko to extricate itself from the previous accepted offer, is for $76 per share, half in cash and half in stock. Anadarko stockholders would receive $38 per share in cash and 0.6094 shares of Occidental common stock, according to the letter that Oxy CEO Vicki Hollub sent to Anadarko stockholders today. Value of the deal is $38 billion.

SPONSORED CONTENT

Ways to thank a caregiver

If you have a caregiver or know someone who has been serving as a primary caregiver, March 3rd is the day to reach out and show them how much they are valued!

Bloomberg reported that Occidental (NYSE: OXY) had been turned down three times previously when it attempted to buy Anadarko. Both companies are major operators in the Permian Basin of West Texas, with Occidental the largest oil producer in that region, according to Hollub’s statement on the Occidental website. Anadarko also has Colorado operations.

Anadarko stockholders may choose to turn down the larger offer, and not just because of the $1 billion penalty payment. Bloomberg said Chevron, a considerably larger operation, may be seen as more stable in the marketplace. Chevron’s venture creates a mega-company; the Occidental proposal would create a merger of two mid-size companies.

Still, the purchase, if it occurs, will be Occidental’s largest ever.

Stock prices for the three companies today were mixed, with Anadarko up $7.63 to $71.62, Chevron down $3 to $119.02, and Occidental down $1.38 to $60.98.

 

Chevron Corp. (NYSE: CVX) isn’t the only corporate suitor for Anadarko Petroleum Corp. (NYSE: APC). Occidental Petroleum Corp. has upped the ante by offering to buy the Woodlands, Texas, oil company with a bid 20 percent higher than Chevron’s.

BizWest reported on April 12 that Chevron had tendered, and Anadarko had accepted, an offer that would have Chevron pay $33 billion in cash and stock, or $65 per share, for Anadarko. The Chevron offer was 75 percent stock and 25 percent cash.

The Occidental offer, which if accepted would require a $1 billion fee in order for Anadarko to extricate itself…

Christopher Wood
Christopher Wood is editor and publisher of BizWest, a regional business journal covering Boulder, Broomfield, Larimer and Weld counties. Wood co-founded the Northern Colorado Business Report in 1995 and served as publisher of the Boulder County Business Report until the two publications were merged to form BizWest in 2014. From 1990 to 1995, Wood served as reporter and managing editor of the Denver Business Journal. He is a Marine Corps veteran and a graduate of the University of Colorado Boulder. He has won numerous awards from the Colorado Press Association, Society of Professional Journalists and the Alliance of Area Business Publishers.
Sign up for BizWest Daily Alerts