The legendary investor's Berkshire Hathaway (BRKA) plans to invest $10 billion in Occidental Petroleum if the oil company successfully acquires Anadarko Petroleum (APC).
The vote of confidence from Buffett adds to the tug-of-war over Anadarko, which is fielding competing bids between Occidental (OXY) and oil giant Chevron (CVX).
"We are thrilled to have Berkshire Hathaway's financial support of this exciting opportunity," Occidental CEO Vicki Hollub said in a statement.
Occidental said Berkshire has committed to invest a total of $10 billion in Occidental. The investment is contingent upon Occidental entering into and completing its takeover of Anadarko.
Andarko said on Monday that it has entered merger negotiations with Occidental, which last week launched a hostile takeover bid worth about 20% more than what Chevron proposed.
Chevron has expressed confidence that its merger agreement will prevail. Chevron would be in line for a $1 billion break-up fee from Anadarko should the smaller company reach a deal with another buyer.
No comments:
Post a Comment