Chevron in a bidding war for Anadarko
Chevron’s CEO Michael Wirth confirmed on Friday that the company’s plans to boost its buyback program by $1 billion depend on the oil giant winning a battle with Occidental Petroleum to take control of Anadarko.
Chevron’s plans to boost the buyback program depend on the battle with Occidental Petroleum.
Stocks impacted: Chevron (CVX), Anadarko Petroleum Corp. (APC), Occidental Petroleum (OXY).
Chevron announced plans to hike the shareholder payout to $5 billion per year when it disclosed a deal earlier this month to buy Anadarko for $33 billion. Two weeks later, Occidental put a higher bid on the table. Earlier, Chevron had planned to repurchase $4 billion worth of shares from investors each year, up from a previously announced $3 billion buyback program. Anadarko extended its recent rally to close on Friday about 8% higher than the value of Chevron’s cash-and-stock proposal. That’s putting pressure on Anadarko to reconsider its merger agreement with Chevron and open itself up to higher offers in a full-blown bidding war.
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