The Chevron Corp group has until 10 May to propose a review of its merger agreement with the Anadarko Petroleum Corp. group or to submit another proposal, Anadarko said in a statement issued on Tuesday in Houston.
The statement said the group’s board of directors had concluded that the proposal presented by Occidental Petroleum Corp is “superior” to the one from Chevron Corp, which is why it plans to terminate the merger agreement with Chevron and move ahead with the proposal from Occidental.
The revised proposal submitted by Occidental Petroleum Corp proposes to pay US$59 in cash and 0.2934 own shares for each ordinary share of the Anadarko Petroleum group, compared with an initial proposal of US$38 in cash and 0.6094 own shares for each ordinary share of Anadarko Petroleum.
The proposal made by the Chevron Corp group offers US$16.25 in cash and 0.386 Chevron shares for each ordinary share of Anadarko Petroleum.
The group’s chief executive, Al Walker, who travelled to Mozambique to find out about the status of the natural gas exploration project, in Maputo referred to the board meeting held in Houston on Monday and noted that Chevron Corp had been given four days to make a counteroffer.
The Occidental Petroleum Corp has since reached an agreement with French group Total to sell the assets of Anadarko Petroleum in Africa, namely in South Africa, Algeria, Ghana and Mozambique. In Mozambique, Anadarko acts as the operator of the Area 1 block, a natural gas project with proven reserves of 75 trillion cubic feet. (Macauhub)