Anadarko backs $38bn bid from Occidental

HOUSTON: Anadarko Petroleum Corp’s board on Monday backed a $38 billion bid from Occidental Petroleum Corp, adding pressure on rival Chevron Corp to raise its offer or walk away from the takeover contest.
The decision capped a series of moves by Occidental to finance and reduce hurdles before its $38 billion deal after Anadarko balked at several earlier offers.
Occidental received the board’s endorsement after raising $18.8 billion in cash pledges that allowed it to avoid a vote by its shareholders on the deal.
Chevron has four days to decide whether it wants to alter an existing merger agreement that Anadarko already accepted or make a new bid. A spokesman confirmed it had receive the notice of termination from Anadarko and declined comment on its next steps.
Anadarko said its board had determined that the revised Occidental proposal constituted a “superior proposal” and that it intended to terminate the Chevron merger agreement, a decision that would see it pay Chevron a $1 billion termination fee. — Reuters