It’s one of the biggest deals in the oil business in years. The question, of course, is whether shareholders will be happy with the end result. The good news: now that the deal is consummated, we’re about to find out. I’m talking, of course, about Occidental Petroleum’s (NYSE: OXY) recent acquisition of Anadarko Petroleum. The Case For OXY For those who may have missed the news, Occidental finalized its acquisition of Anadarko on August 8th. I covered the protracted bidding war between Occidental and Chevron in this piece back in May. In it, I discussed Warren Buffett’s financing arrangement with… Read More
It’s one of the biggest deals in the oil business in years. The question, of course, is whether shareholders will be happy with the end result. The good news: now that the deal is consummated, we’re about to find out. I’m talking, of course, about Occidental Petroleum’s (NYSE: OXY) recent acquisition of Anadarko Petroleum. The Case For OXY For those who may have missed the news, Occidental finalized its acquisition of Anadarko on August 8th. I covered the protracted bidding war between Occidental and Chevron in this piece back in May. In it, I discussed Warren Buffett’s financing arrangement with Occidental, which helped sweeten the pot and seal the deal. Here’s what I said about the arrangement: Occidental, one of the portfolio holdings in my High-Yield Investing premium newsletter, has since come forward with an offer of $76 per share, or $38 billion. That’s not only more generous than Chevron’s $65 bid, but it also has a higher cash component (50% versus 25%). While Anadarko has rebuffed previous advances from Occidental, in part because of concerns that OXY shareholders might balk, it has no choice but to seriously consider this offer. So how does Warren Buffett fit in? Well,… Read More