A bidding war is breaking out over Anadarko Petroleum, with Occidental making an offer worth $76 per share in cash and stock that it says is about a 20 percent premium to Chevron's $33 billion deal.
Occidental Petroleum Corp. said in a letter to Anadarko's board on Wednesday that its bid would give Anadarko shareholders $38 in cash and 0.6094 shares of Occidental stock for each Anadarko share.
Occidental puts the value of its deal at $57 billion, including debt and book value of non-controlling interest.
"We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them," Occidental President and CEO Vicki Hollub said in a statement.
Houston-based Occidental said the proposed combination would bolster its position in the Permian Basin. It's looking to close on the deal during the second half of the year.
Shares of Anadarko Petroleum Corp. jumped more than 9.6 percent to $70 in premarket trading.