Anadarko acknowledges merits of latest Occidental bid
Anadarko Petroleum’s board has declared that Occidental Petroleum’s revised takeover offer constitutes a “Superior Proposal,” compared with the Chevron merger agreement.
Occidental has secured financing for the entire cash portion of the proposed transaction, and completion will not be conditional on approval by the company’s stockholders.
Anadarko has notified Chevron of this development and intends to terminate the two companies’ original arrangement in order to enter into a definitive merger agreement with Occidental.
Chevron has the option to propose revisions to its terms, but if Anadarko accepts Occidental’s offer, the company will pay Chevron a $1-billion termination fee as required by the original merger agreement.