Anadarko Petroleum’s board of directors said on Monday, May 6, that Occidental Petroleum’s buyout offer is superior to its agreement to sell its business to Chevron, putting the deal with the oil giant in jeopardy.
The reversal marks the latest twist in a rare bidding war in the oil and gas sector. Chevron now has four days to counter Occidental’s latest bid for Anadarko, an oil and gas driller with prized assets in the US Permian Basin, the Gulf of Mexico and Africa.
Chevron reached an agreement last month to buy Anadarko for US$33 billion, or US$65 a share. Shortly after, Occidental offered US$55 billion, or US$76 a share, reported The Financial Times. Occidental on Sunday sweetened its bid by offering to pay mostly cash for Anadarko, after earlier structuring the transaction as a 50-50 cash-and-stock deal.