Chevron Reveals Why There Was No 2nd Anadarko Bid
In a recent television interview with CNBC, Chevron Chairman and CEO Michael Wirth has revealed why the company didn’t make a second higher bid for Anadarko Petroleum Corporation.
“We would have eroded shareholder value,” Wirth said in the interview.
“We looked hard at it and we chose to stand behind the deal that we did and was approved by the two boards,” he added.
“When Anadarko concluded that another offer was better, we chose not to go there simply because we work for our shareholders … and we would have eroded returns and value for our shareholders,” Wirth continued.
In the interview, Wirth dodged a question on whether Occidental Petroleum Corporation overpaid for Anadarko.
“That’s a question for others, not for me. I’ll just tell you the deal we did we thought was good for our shareholders and we chose not to go to a place that we thought would have eroded value for our shareholders,” Wirth told CNBC.
Chevron revealed on April 12 that it had entered into an agreement to buy Anadarko. Twelve days later, Occidental Petroleum Corporation announced that it had made a proposal to acquire Anadarko. Occidental then went on to alter its offer shortly after.
According to an opinion piece posted on Wood Mackenzie’s website earlier this week, the Permian will be Chevron’s top priority, as will growing shareholder distributions, following its decision to walk away from its Anadarko bid.
The opinion piece highlighted that Chevron has the means and appetite to pursue another deal at the right price.
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