Thread regarding Occidental Petroleum Corp. layoffs

This is the kind of thing that happens when you put a woman in charge. She lost face when it came out that Anadarko was willing to take a lower bid and is now he77 bent on “winning” even if that means bankrupting the company. She should be sacked for that terrible deal with Buffett. Who the heck pays 8% these days?

Interesting to see how chevron responds to this, don’t expect they will counter offer much, but believe they will raise a little, and a little, until they see OXY stocks keeps decreasing, then they or someone else will buy out both. Is this possible?

Sounds like VH thinks she is a emperor, shareholders need to vote. Time to rid ourselves

of this incompetence.

I agree. After the Buffett fiasco and the upcoming credit downgrades, Oxy may STILL not be able to raise enough cash. And I'm not sure I see this fiasco passing a shareholder vote. Good chance it collapses even without a CVX counter offer. There are already rumors that activist investors are buying up shares of Oxy to force a sale or split the company up. Oxy might be a more attractive Target in the 60s than Anadarko was for CVX.

OXY stock has declined from $67.18 on April 1 to below $57.48 on May 1, a 14% decrease in a month. Unless the cash component is significantly increased, OXY will have to issue more shares of stock making it more likely that shareholder approval will be required. Anyone getting the feeling this deal may not get done?

You make it sound like Oxy has any ethics to begin with, OP.

Why $10B? Maybe to avoid shareholder approval. The $38B offer for Anadarko was to be 50% stock & 50% cash suggesting $19B had already been secured. If the $38B offer was to be altered to consist of $29B cash instead of $19B cash, the necessary stock component would need to be $9B or 150MM shares @ $60/share which is approximately 20% of the current outstanding shares. Stock exchange rules require shareholder approval on any transactions that involve issuance of more than 20% of existing shares. OXY has approximately 750 MM outstanding shares.

Something is definitely taking place. If this is a plot to side-step shareholder approval, it may or will be necessary to vote against Executive management and the Board of Directors at upcoming May 10 stockholder meeting. OXY is scheduled to report 1st quarter earnings May 6. Maybe more information will be provided at that time.

The original offer required shareholder approval because of NYSE regs. Any time a company issues more than 20% additional common stock, a shareholder vote is required. The big shareholders such as T Rowe Price are very opposed to the deal. By bringing in $10B additional cash, they can issue more cash and less stock to Anadarko shareholders and not trigger a vote. It's an end-around move. And Warren gets an 8% dividend with warrants to buy common shares later if the company stays afloat. He gets rich and the Oxy shareholders get screwed.