Occidental offers $57 billion for Anadarko, topping Chevron

(Reuters) – Oil and gas producer Occidental Petroleum Corp sought to scuttle Chevron Corp’s takeover of Anadarko Petroleum Corp on Wednesday with a $57 billion bid that raises the prospect of the first hostile battle for a major oil company in years. The surprise $76-per-share proposal comes after Occidental repeatedly said in recent weeks that it had been trying to woo Anadarko in an effort to become the largest producer of oil in west Texas’s Permian basin, where production has boomed in recent years. Occidental’s bid pushed Anadarko’s share price in premarket trading above the $65 per share offered by Chevron. It said it had boosted the cash portion of its offer to 50 percent, up from earlier offers. Chevron deal comprised 25 percent cash and 75 percent stock. A deal would make Occidental the largest producer in the lucrative Permian, with total production of 533,000 barrels of oil equivalent production per day, the company said. Shares of Anadarko were up more than 14 percent at $73 in premarket trading, while Occidental shares were down 8 percent at $57.38. Occidental said on Wednesday in a letter to Anadarko’s board that it had made two proposals of “significantly higher value” to… continue reading

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