Occidental Proposes Acquisition of Anadarko for $76 Share
OAKHURST, N.J. (DTN) --- Occidental Petroleum Corp. today in a letter to the
board of directors of Anadarko Petroleum proposed acquiring Anadarko for $76.00
per share, over $10 per share more than an offer by Chevron earlier this month
to purchase Anadarko.
Under the proposal from Occidental, Anadarko shareholders would receive
$38.00 in cash and 0.6094 shares of Occidental common stock for each share of
Anadarko common stock. The 50-50 cash and stock transaction is valued at $57
billion based on Occidental's closing price on Tuesday (4/23), including the
assumption of net debt and book value of non-controlling interest.
Occidental believes its proposal is superior both financially and
strategically for Anadarko's shareholders, creating a global energy leader with
the scale and geographic diversification to drive growth and deliver compelling
value and returns to the shareholders of both companies. The combined company
will be uniquely positioned to leverage Occidental's demonstrated operational
and technical expertise, producing greater anticipated synergies than
Anadarko's pending transaction with Chevron.
"Occidental and Anadarko have a highly complementary asset portfolio,
providing us with a unique opportunity to realize significant operating, cost,
and capital allocation synergies and achieve near-term cash flow accretion,"
said Vicki Hollub, president and CEO of Occidental.
Hollub continued, "We have been focused on Anadarko for several years
because we have long believed that we are ideally positioned to generate
compelling value from a combination with them. We look forward to engaging
immediately with Anadarko's Board and stakeholders to deliver this superior
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