Occidental makes offer for Anadarko Petroleum

There is A bidding war breaking over Anadarko Petroleum, together with Occidental producing a offer worth $76 a share in cash and stock that it says is roughly a 20% premium for Chevron’s $33 billion bargain.

Occidental Petroleum Corp. said in a letter to Anadarko’s board Wednesday that its bid would give Anadarko shareholders $38 in money and 0.6094 shares of Occidental inventory for every Anadarko share.

“We’ve been concentrated on Anadarko for many years because we have long thought that we’re ideally positioned to generate compelling value from a mix with them,” Occidental President and CEO Vicki Hollub said in a statement.

Houston-based Occidental said the proposed combination would bolster its position. It is seeking to close on the deal.

Stocks of Anadarko Petroleum Corp. jumped over 9.6% to $70 in premarket trading.