The board of directors of US oil company Anadarko has unanimously concluded that Occidental Petroleum’s revised offer is superior to that proposed by Chevron, the company said in a statement.
Anadarko has notified Chevron of its decision and its intention to terminate the merger agreement. However, Chevron now has a period of four business days (until May 10) to improve its offer.
If Anadarko chooses to close an agreement with Occidental, they will have to pay Chevron a penalty of US $1 billion dollars.
Occidental improved its bid for Anadarko this weekend by increasing the cash portion of the purchase price. Of the 76 dollars per share offered, Occidental is willing to pay US $59 in cash and the rest in titles.
Occidental previously offered US $38 in cash and 0.6094 own titles for each share of Anadarko. According to Occidental, this revised offer improves the price offered by Chevron by 23.3%, set at 61.62 dollars per share of Anadarko.