Anadarko says it plans to end its $33 billion takeover deal with Chevron in favor of a revised bid by Occidental Petroleum.
Occidental’s offer is worth about $57 billion in cash and stock, including debt and book value of non-controlling interest. Chevron’s offer would be worth about $50 billion by the same metric.
Last month Warren Buffett’s Berkshire Hathaway said it would put up $10 billion in financing for Occidental.
Anadarko, which is based in The Woodlands, said its board determined Occidental Petroleum Corp.’s offer was superior. Under its deal, Chevron has until Friday to make a revised proposal or a new offer.
Anadarko Petroleum Corp. will have to pay a $1 billion fee if it ends the deal with Chevron Corp.
Shares of Anadarko edged higher before the market open on Tuesday. Chevron’s stock declined slightly.