Houston-based Occidental Petroleum Corp. (NYSE: OXY) has sent a new offer to The Woodlands-based Anadarko Petroleum Corp (NYSE: APC), according to a May 5 press release.
Like the previous proposal, the latest offer is for $76 per share in cash and stock. However, the new proposal is for 78 percent cash and 22 percent stock, whereas the proposal announced on April 24 was a 50-50 split. Under the revised proposal, Anadarko stockholders would receive $59 in cash and 0.2934 shares of Occidental common stock per Anadarko share.
Anadarko is Colorado's largest oil and gas producer by volume and operates 6,290 wells in the state. It employs 1,100 people in the state.
Occidental notes that its offer represents a premium of approximately 23.3 percent to California-based Chevron Corp.’s offer, which is valued at $61.62 per share as of May 3. When the deal for Chevron (NYSE: CVX) to acquire Anadarko was first announced on April 12, it was valued at $65 per share, consisting of 25 percent cash and 75 percent stock. Occidental made its first public offer on April 24, and Anadarko later confirmed it would resume negotiations with Occidental, which could result in a superior offer. However, the Chevron deal remains in place thus far and comes with a $1 billion breakup fee, which Occidental would pay if it wins Anadarko.
Read more at the Denver Business Journal | https://bit.ly/2VNJrML
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