Anadarko Petroleum Corp. has announced that it intends to resume negotiations with Occidental Petroleum Corp. in response to Occidental’s recent proposal to acquire Anadarko. Anadarko had entered into a definitive merger agreement with Chevron Corp. prior to Occidental’s renewed interest.
Anadarko 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 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 US$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 US$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 Anadarko 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.
There can be no assurance that negotiations with Occidental will result in a transaction that is superior to the pending transaction with Chevron. Further, the terms of any transaction with Occidental may vary from those reflected in the Occidental Proposal.
Evercore and Goldman Sachs & Co. LLC are acting as financial advisors to Anadarko. Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Anadarko.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30042019/anadarko-to-resume-negotiations-with-occidental/
You might also like
Daewoo Engineering & Construction has completed the installation of a cryogenic heat exchanger at Nigeria LNG's Train 7.