Anadarko Confirms Apache Rejected An All-Stock Offer

Anadarko Confirms Apache Rejected An All-Stock Offer
Anadarko confirms an offer it made to buy fellow oil producer Apache has been rejected.


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and based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn," Anadarko Chief Executive Al Walker said in a statement.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)


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