Occidental challenged Chevron’s initial bid last month, offering $57 billion in cash and stock, including debt and book value of non-controlling interest. Chevron’s offer was worth about $50 billion by the same metric.
Occidental’s bid gained momentum two weeks ago when Warren Buffett’s Berkshire Hathaway said it would put up $10 billion in financing for Occidental. – wacotrib.com
Chevron will not make a counterproposal to Occidental, a smaller company than Chevron that nonetheless offered a higher, $76-per-share cash-and-stock bid for Anadarko.
SHOTS FIRED @ Occidental Petroleum
“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal,” Chevron CEO Michael Wirth said in a statement.
Under the terms of the initial agreement between Chevron and Anadarko, the San Ramon, California-based company is entitled to a $1 billion termination fee.