Occidental Petroleum Bids for Anadarko -- Update

By Micah Maidenberg

Occidental Petroleum Corp. offered to purchase Anadarko Petroleum Corp. in a deal with an equity value of $38 billion, more than Chevron Corp.'s bid for the oil company.

Houston-based Occidental said Wednesday it is offering Anadarko shareholders $38 in cash and 0.6094 shares of Occidental's stock per share.

Earlier this month, Chevron proposed buying Anadarko in a cash-and-stock deal valued at $33 billion. In that offer, shareholders would receive 0.3869 shares of Chevron and $16.25 in cash per share.

"Occidental believes its proposal is superior both financially and strategically for Anadarko's shareholders," the company said in a statement.

Occidental valued its bid at $57 billion, which includes the assumption of net debt and book value of non-controlling interests. Anadarko reported $16.4 billion in total consolidated debt at the end of 2018.

Shares of Anadarko jumped 10% in premarket trading Wednesday on the news, while Occidental's stock fell 7%. Chevron shares ticked lower.

A representative for Chevron couldn't immediately be reached.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

April 24, 2019 08:08 ET (12:08 GMT)

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