A bidding war is breaking out over Anadarko Petroleum, with Occidental making an offer that it says is about a 20% premium to Chevron's deal announced earlier this month.
Occidental Petroleum Corp. said in a letter to Anadarko's board on Wednesday that its bid is worth $76 per share in cash and stock and would give Anadarko shareholders $38 in cash and 0.6094 shares of Occidental stock for each Anadarko share.
Occidental puts the value of its deal at $57 billion, including debt and book value of non-controlling interest. Chevron's deal was valued at $33 billion in cash and stock, or $50 billion including debt and book value of non-controlling interest.
"We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them," Occidental President and CEO Vicki Hollub said in a statement.
Houston-based Occidental said the proposed combination would bolster its position in the Permian Basin. It's looking to close on the deal during the second half of the year.
In a letter to Anadarko's board of directors, Hollub said Occidental made three proposals to acquire Anadarko since late March, and that each offer was significantly higher than what Anadarko accepted from Chevron. She said Occidental was surprised and disappointed that Anadarko didn't engage with Occidental on a previous proposal.
Chevron and Anadarko did not immediately respond to requests for comment.
Shares of Anadarko Petroleum Corp. jumped more than 11% to $71.28 in morning trading.