I'm trying to understand investor Carl Icahn's lawsuit against Occidental over their bid to acquire Anadarko. Does Icahn hope to force company to have shareholders vote on deal after it was accepted by Oxy Management ?
Overpay for Anadarko and burdened with $40 billion plus of debt and the potential for WTI prices below $55/barrel--- glad I am NOT a Occidental shareholder :)
Chevron will get an even better deal on OXY in about three years when they fold under $30 oil and too much debt, having sold off all the non-Permian assets.
OXY debt load is basically a poison bill for any takeover short term as it leaves nothing to leverage during the transition. An OXY bankruptcy reorg in a few years will change the equation (at the expense of current shareholders, but not the one with preferred stock...Omaha is too smart for that!).
I asked my Morgan Stanley broker what probability this would occur. He said that it’s low, but, they have a 40% probability, today, that OXY goes on the market with merger, acquisition or outright takeover, within 2 / 3 years.
All Oxy shareholders got taken to the cleaners big time. Ichan is the only shareholder so far with the stones to sue and the weight to have an impact on the deal. He may not get what he wants but the deal was sloppy dirty and he wants to see the wash water (financial facts) before its thrown out to the curb with the majority of Anadarko's employees. Sad but true. When you take a beating in the market, its nice to have enough clout to know who ran off with the cash and who else was left shorted. Those who a forced to suffer often make good partners in revenge.
It’s really a P——-ing contest between Icahn and Buffett. They are long time competitors and Icahn is miffed since he wasn’t included in the action.