Anadarko Shares Soar 16% As Occidental Launches Bidding War Against Chevron
Given the beating Anadarko shares have endured in recent months, it shouldn’t come as a surprise that other major players in the American petroleum industry aren’t willing to let Chevron buy the company without a fight. And on Wednesday, Occidental Petroleum kicked off what we imagine will become a hard-fought bidding war for Anadarko by offering $76 a share for the company, a roughly $10 premium over Chevron’s bid.
In a letter to Anadarko’s board, Occidental argued that its offer represented the better financial and strategic move for the Woodlands, Texas-based Anadarko.
“As you know Occidental has long admired Anadarko, and we believe that a combination of our two companies would create a global energy leader with a winning shareholder value proposition. Combining our highly complementary global asset portfolios would generate significant cost and capital synergies, attractive organic growth and a stable, sustainable and growing dividend. The resulting diverse but focused company will be a world leader in shale development and enhanced oil recovery.”
Anadarko shares soared 16% in pre-market trading, roughly half of the intraday bump triggered by Chevron’s offer.