Chevron: no plans to raise Anadarko bid
(CercleFinance.com) - US integrated oil giant Chevron said that it does not plan to increase its offer for Anadarko, paving the way for rival Occidental to take control of the Texan firm.
The San Ramon, California-based company said that it will not make a counterbid, hence enabling Anadarko to terminate its merger agreement.
"Winning in any environment doesn't mean winning at any cost. Cost and capital discipline always matter," explained Chevron's Chairman and CEO Michael Wirth.
If Anadarko terminates the merger pact, it will have to pay Chevron a termination fee of 1 billion dollars.
Chevron said that it plans to boost its share repurchase rate by 25% to 5 billion dollars per year.
Chevron shares were up 2.6% on Thursday morning on the NYSE, while Anadarko shares were down 2.9%.
Copyright (c) 2019 CercleFinance.com. All rights reserved.