Chevron Reveals Why There Was No 2nd Anadarko Bid



Chevron Reveals Why There Was No 2nd Anadarko Bid
Chevron Chairman and CEO Michael Wirth reveals why the company didn't make a second higher bid for Anadarko Petroleum Corporation.

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.

On May 9 Chevron confirmed that it would not increase its offer to acquire Anadarko. On May 10 Occidental revealed that it had entered into a definitive agreement to acquire Anadarko.

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.



WHAT DO YOU THINK?


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CARROLL HALL  |  June 23, 2019
Why was the original 38b bid upprd so hi to 55 + billion by Occidental when there was no competitive bid to do so ?
Oxy Shareholder  |  June 22, 2019
My position in OXY has lost about $18,000. With time and some dividends, I might recover that in a year. Should have invested in Anadarko? Yep, he who predicts the past has perfect vision.
Bob Bielenda, Chevron Retiree  |  June 22, 2019
One of Chevron’s guiding principles “do it right or don’t do it at all” also applies to business deals. Mike got it right when he said we don’t want to win at any price. There will be more opportunities!
Jimmy Sissa  |  June 21, 2019
Keep your powder dry....better deals are on the horizon. Too many unanswered issues in Mozambique right now.
Bob Rahm  |  June 20, 2019
Reminds me of Tillerson/Exxon regarding XTO purchase, “We probably paid too much."