Oxy CEO is so desperate to gain approval for this deal that she publically leaked 8.8 billion for Africa.. Chevron valued those assets at somewhere between 3-4 billion. She just guaranteed a counter offer from chevron or others.
9 replies (most recent on top)
This is how it will play out: CVX waits until Friday to up their price, then tell the world, this is the best fair market value for APC; OXY CEO now MUST come out to explain why she over paid for APC; CVX waits to see what the Shareholders will do at OXY this Friday; OXY ups their price; APC stays with OXY; OXY has trouble with financing - Total wants better terms; OXY cant sell Gulf property; CVX (or another) buys OXY for half price in about 3 years.
You guys are high. Chevron is the one failing by not winning this deal. You guys don’t deserve to win it and destroy a great company and people’s lives
Let’s not pretend that you clowns know anything about M&A. Leave this discussion to those who know what they are talking about and earn the big bucks.
OXY market cap has now decreased in excess of 15 percent since April 1, 2019. Now OXY is revising offer so as to avoid OXY shareholder approval. A lot of unhappy OXY shareholders. Why not just buy out OXY at $65/share after the OXY purchase of Anadarko. Again, a lot of unhappy OXY shareholders.
I am happy with the way CVX is handling this so far. Let the other guy / gal overspend. No doubt Watson and his team would have blown it with a ridiculous counteroffer to the OXY deal. Nice to see some discipline for a change.
Why not slightly bump it up? APC shareholders may not like OXY offer, which is simply cutting out APC assets to different buyers.
I agree with both previous comments. Chevron should stick to their original offer to Anadarko or walk away.
-gtr: well said! I am sure Chevron is in no great rush either, as we have more than enough to drill in the short term. Better to walk and wait for other fruit to ripen.
Seems like the value is bloated. I don't think a counter offer from CVX is guaranteed at all. Let Oxy buy APC and then have to turn around a sell assets off; first at fair value, then bargin prices, then eventually fire sale prices. Oxy will be bleeding cash to service debt in short order. And then Oxy will be borrowing deeply to compete for high demand drilling rigs in the Permian. Buffet saw the hog at the trough and offered the glutton a full sack of corn at the blood-letting rate of 8%. APC is not worth $76 per share. Not to OXY, CVX or anyone else, at that price all will have buyers remorse by 2022. Caution is needed at this point by any would-be suitor.