This appears to confirm the previously leaked rumor:
www.prnewswire.com/news-releases/anadarko-intends-to-resume-negotiations-with-occidental-300839642.html
Sad to see the Company being used as a bargaining chip to increase the Directors remuneration, AKA 'stockholder benefits'.
Hard to see how Oxy sees the deep water Gulf a good fit with the Piper Alpha history? Hard to see how DJ Basin is a good fit for any oil company with dictatorship style state government that overrules the voters? Also hard to see how LNG projects are good for either Oxy or Chevron with typical cost over runs, long cycle times on ROCE, and extremely low commodity price. Natural gas is a waste product in the core of this showdown. The Permian is the only thing worth looking at in this merger, maybe it’s time both look at other pure Permian plays. We wouldn’t have been here if APC were committed to the Permian and moved people there to learn to drill as good as Oxy and Chevron. All looks well through rose colored glasses in Woodlands, Tx however.
More good news for AAET! I’m sure Oxy is dying to get their eyes on what we’ve been working on up here. Feeling better and better about this buyout.
"Sad to see the Company being used as a bargaining chip to increase the Directors remuneration, AKA 'stockholder benefits'"
That is the only reason the corporation exists. Where a corporation makes innovative new products, arguably it improves health or the quality of life. But where the corp produces--say it with me--an unbranded, undifferentiated commodity, the corp exists solely to make its insiders rich. Not its shareholders, but its insiders. Does it matter to the market whether APC or CVX pumps a barrel that is sold on the futures market?
These are not new or radical ideas. Read Berle & Means. The only difference is that Anadarko is the purest form of the thesis.
What has Anadarko added? Fracking? Maybe but they were really following George Mitchell's lead.
AAET? No, predictive analytics is everywhere, especially Big Oil.
What else?
This is how the company has always been used. Maybe it was a pretty good place to work until recently, and yes it was one of Houston's best workplaces despite its many, many shortcomings and undeserving ego maniacs. With its last breath now, Anadarko will fulfill its true purpose one last time. And go out in a blaze of glory.
APC could say let's go with Oxy. Chevron buys someone else. Then Oxy shareholders vote 'no'. APC stock price nosedives and someone will pay APC a lot less than Chevron is offering today.
Chevron may just turn around and buy Oxy. If they're serious about the Permian, then they will either do that, Pioneer, or Concho.
APC is gonna fool around till Chevron says, "Foget It, we were doing just fine without you".
Seemingly better (per share) before they made the offer to Anadarko.
Now the APC stock price at $72.80 is greater than the Chevron offer but less than the Oxy offer, APC need to get CVX to raise the bid. Still, at least everybody on this site now understands how the system works.