What looks to be a good ol’ fashioned bidding war, Anadarko Petroleum Corporation announced on Monday that its board of directors has unanimously determined to terminate the Chevron Merger Agreement and accept a revised offer from Occidental Petroleum Corporation, a company that came to them with a revision of a previous offer. According to a press release from Anadarko issued on May 6th, the offer from Occidental Petroleum Corporation constitutes a “Superior Proposal” and Anadarko has notified Chevron of their intentions to terminate their merger. The press release explains that “pursuant to the Chevron Merger Agreement, Chevron has the right, during the four business day period
ending on May 10, 2019
… to propose revisions to the terms of the Chevron Merger Agreement, or to make another proposal. Anadarko is required to, and will, make its representatives reasonably available to negotiate with Chevron during this period with respect to such proposed revisions or other proposal, if any.” If the termination of the Chevron merger goes through it will come with a huge price tag as Anadarko will be required to pay a $1 billion dollar termination fee to Chevron. In the meantime, it remains unclear to the public what the result of the bidding war will mean for local Anadarko employees.
