Buffett’s Berkshire Hathaway to invest $10B in Occidental Petroleum for bidding war
Warren Buffett’s Berkshire Hathaway on Tuesday said it plans to invest $10 billion in Occidental Petroleum Corp., a proposal that’s contingent upon the company completing its proposed takeover of Anadarko Petroleum.
In exchange, Berkshire Hathaway will receive 100,000 shares of cumulative perpetual preferred stock with a value of $100,000 per share. It will also get a warrant to purchase up to 80 million shares of Occidental common stock, at $62.50 per share.
“We have long believed that Occidental is uniquely positioned to generate compelling value from Anadarko’s highly complementary asset portfolio. We are thrilled to have Berkshire Hathaway’s financial support of this exciting opportunity,” Vicki Hollub, president and CEO of Occidental, said in a statement.
This is a developing story.