Occidental Petroleum on Wednesday started the first takeover battle for a major oil company in years, offering $38 billion for Anadarko Petroleum Corp, a bid that topped a $33 billion offer by Chevron Corp.
Both suitors are offering a premium for Anadarko’s holdings in the Permian Basin of West Texas and New Mexico. The vast shale field holds oil and gas deposits that can produce supplies for decades using new, low-cost drilling techniques.
Occidental’s surprise $76-per-share bid is valued at $57 billion, including debt. That is well above Chevron’s $65 per share offer, worth $50 billion including debt, and would make an Occidental-Anadarko deal the fourth-largest in oil production.
Anadarko said it had received the bid but had not yet determined whether it was a “superior proposal,” and for now reaffirmed its recommendation of a sale to Chevron.
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