Offshore staff
HOUSTON – Anadarko Petroleum Corp. said it intends to resume negotiations with Occidental Petroleum Corp. in response to its acquisition proposal delivered on April 24.
On April 11, Anadarko entered into a definitive merger agreement withChevron Corp.
The company said it is resuming its earlier negotiations with Occidental because Anadarko’s board of directors, following consultation with its financial and legal advisors, has unanimously determined that the Occidental proposal could reasonably be expected to result in a “superior proposal” as defined in the Chevron merger agreement.
The company said the Occidental proposal reflects significant improvement with respect to indicative value, terms and conditions, and closing certainty as compared to any previous proposal Occidental made to Anadarko.
Under the Occidental proposal, Occidental would acquire Anadarko in a transaction with consideration comprised of $38.00 in cash and 0.6094 of a share of Occidental common stock per share of Anadarko common stock.
Under the Chevron merger agreement, Chevron would acquire Anadarko in a transaction with consideration comprised of $16.25 in cash and 0.3869 of a share of Chevron common stock per share of Anadarko common stock.
The Anadarko board’s determination allows the company to resume negotiations with Occidental in accordance with the Chevron merger agreement. The Chevron merger agreement remains in effect and accordingly the Anadarko board reaffirms its existing recommendation of the transaction with Chevron at this time.
04/29/2019
