Can someone d-mb it down and explain Oxy WB deal? Why it was good or bad for other investors and employees? Please use easy analogies like bird, fish, sticks and stones.
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Assuming you're referring back to the 2019 deal for Anadarko, I think many forget the rest of the story -- Carl Icahn owned a significant amount of Oxy shares prior to the Anadarko acquisition. Carl is not a passive investor - he was and is a corporate raider, looking to make a quick buck at the expense of other shareholders and the employees of a target company (in this case Oxy).
Vicki and the board were not ignorant of Carl's intent. The Anadarko deal was a sort of "poison pill" to outmaneuver Carl, which was why he was so upset.
Carl could pretend to be victim all day, but if the Anadarko deal had not gone through, there would be no Oxy today. Carl would have broken up the assets and sold them off to the highest bidder (foreign or domestic).
OP was quite specific in the request to "d-mb it down."
You only used bird, fish, sticks but no stones to describe how VH got played.
Oh, wait . . .
I get it . . . WB had the stones.
Maturity in the responses is apropos for OP.
Karma is bi***
So much maturity in some of these responses. Someone is obsessed with VH.
OP, try this:
A bird named Vicki desperately wanted fish sticks for dinner but didn't have enough money to buy a box of 12.
So WB said "Don't worry. I'll lend you the money, you can pay me back later. There's just one thing - I'm also going to eat 10 of the fish sticks."
The bird brain thought that was too good to be true and made the deal.
Does OP represent the level of IQ at Oxy?
It's good for WB only. He receives preferred dividends that us normal shareholders do not receive. Lets see..8% on 10 billion dollars is $800 million... Nice
Does it work if we add that the fish has to help the pond produce more algae (massive dividend payments), and that causes the fish to be unable to remove very many of the pebbles (debt). The elephant gets all the good algae (preferred dividends) and other investors (the giraffe and baboon) get messily little sips from the pond (a minuscule dividend).
Imagine a large, wise elephant (Warren Buffett) sees a fish (Oxy) struggling in a pond. The fish wants to buy another pond (Anadarko) but doesn’t have enough pebbles (money). The elephant offers pebbles in exchange for special privileges: he gets to eat the tastiest algae (preferred dividends) and has the option to own more of the pond later (stock warrants).
Tasty Algae (Preferred Dividends): The elephant receives a steady stream of delicious algae, ensuring he benefits regardless of the pond’s condition.
Mixed Feelings: Some fish are happy because the elephant’s involvement brings stability and resources. Others worry the elephant might eventually take over the pond, leaving less for them.
Debt Concerns: The initial deal added a significant number of pebbles (debt) to the pond, making it harder for the fish to swim freely.