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The shareholders of Anadarko Petroleum will vote on the takeover of the company by Occidental on August 8, reported Reuters, adding that it avoided the shareholder vote on the transaction by guaranteeing a $ 10 billion financing to Warren Buffett.
Occidental defeated Chevron in Anadarko after offering US $ 38 billion to the company, including 80% in cash, in addition to taking over Anadarko's debt. Initially, Oxy had offered 50% of the debt of 57 billion US dollars, including cash price, and the rest in shares, but Anadarko was reluctant to accept this offer. Oxy then increased the transaction to 80% and obtained approval from the Anadarko Board of Directors.
Some of its own shareholders, however, were not particularly pleased with this news. The militant investor Carl Icahn was one of the most virulent and he launched an offensive against the company to ensure that no transaction of this size is possible. The offensive envisages the replacement of four members of the board of directors and the amendment of the Oxy charter.
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"It is important to add new directors to Occidental's board of directors to oversee future extraordinary transactions such as the Anadarko transaction and ensure that they are not consumed without the approval of shareholders, the where applicable, "Icahn told shareholders in June.
Anadarko has close to 250,000 net acres in the Permian, the American shale star, and this rapprochement will strengthen Western's position as the leader of the region that is behind the second shale revolution.
Oxy offered Anadarko's shareholders approximately $ 73.46 per share, which represented a 57% premium over the closing price of the shares on April 11, when Anadarko announced the signing of a repurchase agreement with Chevron. Oxy launched its bid on Anadarko almost immediately after this announcement. In the meantime, Chevron took $ 1 billion more from Anadarko's break-up tax and a higher stock price, with traders apparently not spending nearly $ 50 billion an acquisition.
By Irina Slav for Oilprice.com
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