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Occidental Petroleum bid $76 a share for Anadarko Petroleum on Wednesday, higher than a previous offer by Chevron for the oil and gas driller.
The new Occidental offer, which was sent via a letter to Anadarko’s board on Wednesday, is half cash and half stock, specifically $38 in cash and 0.6094 Occidental shares. It values Anadarko at $57 billion, including debt.
Chevron announced an agreement on April 12 to buy Anadarko for $33 billion in cash and stock, valuing the company at $65 a share. CNBC later reported there was another bidder for Anadarko, Occidental, which was offering mid-$70s per share before Chevron stepped in with its offer.
After the new Occidental bid, Anadarko shares surged 10% in Wednesday’s premarket trading, to above $70.
The Chevron offer is a 75% stock and 25% cash transaction. The breakup fee for the Chevron-Anadarko deal is said to be 3% of the deal, sources said.
“Anadarko has great assets,” Occidental CEO Vicki Hollub said in a interview on CNBC’s “Squawk Box” on Wednesday. “We are the right acquirer … because we can get the most out of the shale.”
Hollub said she considers this a friendly offer, even though Anadarko may not see it that way. The offer is 20% above where Anadarko was trading on Tuesday.
Occidental shares fell more than 7 percent in Wednesday’s premarket. Chevron, whose stock was flat, did not immediately return a call for comment.
— With reporting by Tom DiChristopher
This is a developing story. Check back for updates.