25 Apr Anadarko takeover battle triggered by Occidental’s $38 billion bid
Occidental Petroleum has made a US$38 billion offer for Anadarko Petroleum in a move that instigates a takeover battle for the oil giant, after Chevron’s earlier bid of $33 billion was accepted by Anadarko.
Both bidders are offering a premium for Anadarko’s holdings in the Permian Basin of West Texas and New Mexico, which holds shale oil deposits that can produce supplies for decades using new, low cost drilling techniques.
Occidental’s surprise $76-per-share bid topped the $65-per-share offer made by Chevron and would make the combined Occidental-Anadarko company the fourth largest in the world, in terms of oil production.
Anadarko said it had received the bid but had not yet determined whether it was a ‘superior proposal,’ and instead reaffirmed its recommendation of a sale to Chevron.
Chevron spokesperson Kent Robertson echoed this in saying that the company remains confident that the transaction agreed by Chevron and Anadarko will be completed.
However, Occidental’s CEO Vicki Hollub revealed in an interview that her company is also confident of a deal. “Our proposal is so strong, it’s definitely superior, and we now know the value which we can communicate to shareholders,” she said.