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Chevron's acquisition of Anadarko in jeopardy

Anadarko initially accepted Chevron's acquisition bid, but then Occidental entered the foray and offered an ever higher price – a bid Anadarko is now considering, even though annulling the deal with Chevron would cost USD 1 billion.

According to sources close to the matter, Anadarko has reportedly decided to begin negotiations regarding a sale to Occidental Petroleum. This comes despite the fact the former had already decided to accept Chevron's offer— but the matter is not yet settled, reports Reuters.

Explained briefly, Chevron announced on April 12 that it had entered an acquisition agreement with Anadarko for a price of USD 33 billion, corresponding to USD 65 per share. Payment was to be made through a combination of cash and equity, so Anadarko stakeholders would receive 0.3869 Chevron shares and USD 16.25 per Anadarko share. In order words, the transaction would entail 75 percent equity and 25 percent liquid capital.

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