Anadarko battle heats up

Occidental’s hostile counter-bid throws a potential spanner in Chevron’s big Permian bet

It was not meant to be like this. When Chevron announced its $65/share, $50bn swoop on US independent Anadarko, most observers were congratulating the major on a good fit at an excellent price, while turning their attention to what Chevron's bold move meant for the remainder of its peer group. But another potential Anadarko suitor, its fellow US independent Occidental, is keen to spoil the party. On 24 April, its CEO Vicki Hollub sent a letter to the Anadarko board making public three previous bids and outlining another offer. Occidental's 50pc in cash, 50pc in shares deal values Anadarko at $76/share for an overall value of $57bn. But it is not as simple as Occidental's higher bid trumping