Markets

Occidental updates Anadarko bid to beat Chevron’s rival offer

US oil and gas company Occidental said its updated $38bn (£29.02bn) bid to take over Anadarko Petroleum was designed to make it more attractive than a rival offer from Chevron by removing the requirement for a shareholder vote.

Occidental increased the cash component of its offer to 78 per cent on Sunday, meaning the deal could go ahead without a shareholder vote and allowing for “clarity of closing”.

Read more: Warren Buffett backs Anadarko bid with $10bn Occidental investment

Occidental chief executive Vicki Hollub said Chevrons $33bn merger offer had been considered superior to Occidentals as it would not require a Chevron shareholder vote.

Hollub said the company did not want to bypass the vote but said it was in shareholders best interest to close the deal without increasing the price.

On Sunday Hollub said in a letter to Anadarkos directors that the revised proposal does not require an Occidental shareholder vote “which has been repeatedly cited as the explanation for why you previously chose Chevrons $65 offer over our $76 offer.”

She added that the updated bid represented a premium of 23.3 per cent over Chevrons offer.

“We remain perplexed at your apparent resistance to obtaining far more value for Anadarko shareholders which has been expressed clearly through our interactions over the last week,” Hollub said in the letter.

Read more: Anadarko says it will talk to Occidental over $3Read More

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