Warren Buffett’s Berkshire Hathaway will be financing a bid by Occidental Petroleum for Anadarko, potentially upending Chevron’s $33 billion offer for the energy firm.
Anadarko and Chevron signed a merger agreement however Anadarko Petroleum stated Monday that it is now considering a deal from Occidental worth about $57 billion in stock and cash. Chevron’s offer would be worth roughly $50 billion such as debt and book value of interestrates.
Berkshire said it will spend $10 billion in Occidental. It will receive 100,000 preferred stocks along with a warrant to get to 80 million shares of Occidental common stock with an exercise price of $62.50 each. The preferred stock will accrue profits at 8 percent per year. Occidental stocks traded at $58.46down 2.7 percent, in premarket trading.
The investment is contingent on Occidental completing its purchase of Anadarko and entering .
Berkshire Hathaway Inc., located in Omaha, Nebraska, owns a range of businesses including insurance, railroads, jewelry as well as significant investments in American Express, IBM and Wells Fargo & Co..