=Anadarko Petroleum (APC) : superior proposal from Occidental Petro (OXY) to acquire company for $76.00 per share

Anadarko Petroleum: Occidental Petroleum (OXY) confirms 'superior proposal' to acquire Anadarko for $76.00 per share in cash & stock

Occidental Petroleum Corporation delivered a letter to the Board of Directors of Anadarko Petroleum setting forth the terms of a superior proposal by Occidental to acquire Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock. Occidental's proposal represents a premium of approximately 20% to the value of Anadarko's pending transaction with Chevron (CVX) as of April 23, 2019.

• Occidental believes its proposal is superior both financially and strategically for Anadarko's shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies. The combined company will be uniquely positioned to leverage Occidental's demonstrated operational and technical expertise, producing greater anticipated synergies than Anadarko's pending transaction.
• The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental's closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.

Occidental Petro CEO on CNBC discusses bid for Anadarko (APC); note APC agreed to be acquired by Chevron (CVX) two weeks ago

• Anadarko will enhance dividend plus growth strategy
• Most APC assets are in the shale -- OXY has a proven track record in the Permian Basin.
• Been studying APC for two years; first approached them in July 2017; still a friendly engagement.
• CNBC's Faber: Why not look at other shale plays without a fight? No other oppty with this upside potential. There are 10K wells that can be drilled; OXY has much more efficient operations in the Delaware Basin.
• Will now be able to articulate strategy to its own shareholders -- very confident in getting approval from them.
• Half of synergies would come from things they already do for their assets.

Anadarko agreed to receive 0.3869 shares of Chevron (CVX) and $16.25 in cash which amounts to $65/share on April 12.

Occidental offered $38.00 in cash and 0.6094 shares of OXY which amounts to $76/share this morning (the bid has already been diminashed by OXY's falling stock price).

Two weeks ago, APC went with a (less risky) lower bid from a much better capitalized and larger CVX that doesn't need its shareholders to approve the deal while in discussions with OXY.

Premarket: APC +9%, OXY -8%, CVX +0.6%