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  • May 2020 (Revised August 2021)
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Playing the Field: Competing Bids for Anadarko Petroleum Corp

By: E. Scott Mayfield, Daniel Green and Benjamin C. Esty
  • Format:Print
  • | Language:English
  • | Pages:20
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Abstract

On April 8, 2019, Occidental’s CEO Vicki Hollub made a private offer to buy Anadarko Petroleum Corporation for $72 in cash and stock. Anadarko's CEO Al Walker said he would consider the offer, yet three days later, on April 11, he signed a merger agreement with Chevron in a deal worth $65 per share in cash and stock. This agreement included a $1 billion “break-up" (termination) fee payable to Chevron if Anadarko accepted another offer. To avoid losing the deal, Hollub then made an initial public offer to buy Anadarko for $76 per share in cash and stock on April 24. When Anadarko failed to respond, Hollub, revised her offer on May 5. Although the revised offer had the same stated value of $76 per share, it included substantially more cash ($59 per share instead of the original $38 per share). With competing offers on the table, Walker now had to decide whether to accept Chevron’s $65 offer or pay the break-up fee and accept Occidental’s $76 offer? Of course, once he had made up his mind, he would have to convince his board that it was the right offer to accept and the right price.

Keywords

Mergers and Acquisitions; Bids and Bidding; Decision Making; Cost vs Benefits

Citation

Mayfield, E. Scott, Daniel Green, and Benjamin C. Esty. "Playing the Field: Competing Bids for Anadarko Petroleum Corp." Harvard Business School Case 220-087, May 2020. (Revised August 2021.)
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About The Authors

E. Scott Mayfield

Finance
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Daniel W. Green

Finance
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Benjamin C. Esty

Finance
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Related Work

    • July 2021
    • Faculty Research

    Playing the Field: Competing Bids for Anadarko Petroleum Corp.

    By: Daniel Green, E. Scott Mayfield and Benjamin C. Esty
    • July 2021
    • Faculty Research

    Playing the Field: Competing Bids for Anadarko Petroleum Corp

    By: E. Scott Mayfield, Daniel Green and Benjamin C. Esty
    • May 2020 (Revised August 2021)
    • Faculty Research

    Playing the Field: Competing Bids for Anadarko Petroleum Corp

    By: E. Scott Mayfield, Daniel Green and Benjamin C. Esty
Related Work
  • Playing the Field: Competing Bids for Anadarko Petroleum Corp. By: Daniel Green, E. Scott Mayfield and Benjamin C. Esty
  • Playing the Field: Competing Bids for Anadarko Petroleum Corp By: E. Scott Mayfield, Daniel Green and Benjamin C. Esty
  • Playing the Field: Competing Bids for Anadarko Petroleum Corp By: E. Scott Mayfield, Daniel Green and Benjamin C. Esty
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