Occidental Petroleum bids $76 for Anadarko, trumping Chevron offer for the oil and gas driller - CNBC

Occidental Petroleum bid $76 a share for Anadarko Petroleum on Wednesday, higher than a previous offer by Chevron for the oil and gas driller.

The new Occidental offer, which was sent via a letter to Anadarko's board on Wednesday, is half cash and half stock, specifically $38 in cash and 0.6094 Occidental shares.The deal values Anadarko at $57 billion including debt.

Chevron announced an agreement on April 12 to buy Anadarko for $33 billion in cash and stock, valuing the company at $65 a share. CNBC later reported there was another bidder for Anadarko, Occidental, which was offering mid-$70s per share before Chevron stepped in with its offer.

The Chevron offer is a 75% stock and 25% cash transaction.The breakup fee for the Chevron-Anadarko deal is said to be 3% of the deal, sources said.

"Anadarko has great assets," said Vicki Hollub, CEO of Occidental, in a interview on CNBC's "Squawk Box" on Wednesday. "We are the right acquirer...because we can get the most out of the shale."

Hollub said she considers this a friendly offer, even though Anadarko may not see it that way. The offer is 20% above where Anadarko was trading on Tuesday.

Anadarko shares jumped 9% in Wednesday premarket trading to near $70, while Occidental shares fell 6 percent. Chevron did not immediately return a call for comment.

— With reporting by Tom DiChristopher

This is a developing story. Check back for updates.

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https://www.cnbc.com/2019/04/24/occidental-petroleum-bids-76-a-share-for-anadarko-trumping-chevron-offer.html

2019-04-24 11:00:12Z
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