Anadarko Confirms Apache Rejected An All-Stock Offer
Nov 11 (Reuters) - Anadarko Petroleum Corp confirmed that it had offered to buy oil producer Apache Corp in an all-stock deal, but the offer had been rejected without discussions.
Apache shares fell 6 percent in premarket trading on Wednesday, while Anadarko shares rose 2 pct.
"We are unwilling to pursue the transaction without access to detailed non-public information, and based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn," Anadarko Chief Executive Al Walker said in a statement.
Media reported on Tuesday that Apache had rejected an offer from Anadarko.
The offer, which included a "modest" premium, would have been "highly" accretive to Anadarko on a cash flow per-share basis even before synergies, Anadarko said on Wednesday.
Some analysts expect a consolidation in the U.S. shale industry as companies struggle against a prolonged slump in crude prices.
However, there have few major deals among exploration and production companies so far due to a big difference between what buyers are willing to pay and what sellers demand.
Apache shares were trading at $50.10 before the bell, while Anadarko shares were trading at $64.80.
(Reporting by Amrutha Gayathri in Bengaluru; Editing by Ted Kerr and Kirti Pandey)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 4 Offshore Rigs
- Apache Raises North America Output Forecast, Swings To Profit (May 04)
- Oil Producer Apache Posts Smaller-Than-Expected Loss (Nov 03)
- Trade Group Oil & Gas UK Makes 4 Board Appointments (Oct 04)
Company: Anadarko Petroleum more info
- No More Free Lunch Is the Big Change Under Way in the Oil Market (Oct 09)
- Anadarko To Spend $2.5B On Massive Share Buyback (Sep 20)
- Harvey Could Become First Hurricane to Strike Texas Since 2008 (Aug 23)