A Bond Evaluation of the Anadarko Petroleum Acquisition
Leveraging Bond Pricing data through our Price Viewer portal, IHS Markit's John Cowan reviews the fluctuation of spreads for Occidental Petroleum (OXY), Chevron Corporation (CVX) and Anadarko Petroleum (APC) - as OXY and CVX make competing offers to acquire APC.
- Chevron Corporation announced that it had entered into an agreement to purchase Anadarko Petroleum Corporation - cash and stock totaling $33 billion
- With the Chevron announcement on April 12, through April 15:
- Anadarko bond spreads tighten approximately 81bps to treasuries
- Chevron bond spreads widened approximately 4bps to treasuries
- Occidental Petroleum Corporation announces that it made a 3rd and public proposal to acquire Anadarko Petroleum Corp - $38 billion counteroffer
- After the April 24th Occidental announcement, both Anadarko and Occidental spreads continued to widen through month's end, reaching the widest spreads since the April Chevron announcement
Above: Might be an indicator that investor sentiment for the $10 billion preferred stock commitment to Occidental from Berkshire Hathaway on April 30
Spreads as of May 2, 11:29 AM EDT
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