Anadarko opens Occidental buyout talks; Chevron in the wings
HOUSTON (AP) — Anadarko is resurrecting buyout talks with Occidental, setting up a bidding war with Chevron which has offered $33 billion for the energy company.
Anadarko Petroleum Corp. accepted Chevron's bid even though it had been in talks with Occidental for some time. It said Monday that it's reopened talks with Occidental because its bid may be better than the one it received from Chevron.
Occidental Petroleum Corp. last week countered Chevron's bid with an offer worth $76 per share in cash and stock. It put the value of its bid at $57 billion, including debt and book value of non-controlling interest. Chevron's deal was valued at $50 billion including debt and book value of non-controlling interest.
Anadarko would have to pay a $1 billion breakup fee if it doesn't complete its deal with Chevron.
Shares of Anadarko declined slightly before the market open, while Occidental's stock fell 2.1 percent. Shares of Chevron edged higher.