Houston-based Anadarko Petroleum revealed today (11 November) that it was the rejected party in the rumored acquisition of US-based Apache, which consisted of an all-stock transaction offer.
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Image from Anadarko. |
Al Walker, Anadarko chairman, president, and CEO, confirmed the non-binding offer that was made to Apache, in addition to the decision to withdraw the proposal.
“The proposed all-stock transaction, which included a modest premium, would have been highly accretive to Anadarko on a cash flow per-share basis, even before synergies,” Walker said. “Further, based on public information and Apache's historic financial and operating underperformance, the proposed transaction offered shareholders of both companies numerous value-creation opportunities given Anadarko's demonstrated success at building value through operational excellence, proven capital allocation, and active portfolio management.”
Anadarko gave no offer amount for the deal, however Apache ultimately denied the proposition.
"Our efforts to enter into a mutually acceptable confidentiality agreement for the purpose of exploring the merits of a potential transaction were summarily rejected and no discussions of substance occurred. We are unwilling to pursue the transaction without access to detailed non-public information, and based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn," Walker said.
On Monday (9 November), Bloomberg reported that Apache had rejected a takeover bid in the amount of up to US$18 billion, and that Apache was working with Goldman Sachs on its defense strategy.
Speculations of the acquisition by Simmons & Co. included supermajors ExxonMobil and BP, however that was not the case.
In its Q3 report, Apache suffered a net loss of $5.7 billion, and reported an $8.8 billion loss as of 30 September. The company also reduced its capital expenditures for the period by 16%, compared to Q2.
In April, Apache sold its Australian subsidiary, Apache Energy in a $2.1 billion deal to a consortium of private equity funds.
Last year, Apache put its focus on its US shale business, and began selling off some of its offshore assets. The company still owns stake in the UK North Sea, including the 40-year old Forties complex.
Read more:
Apache exits Aussie business for $2.1 billion
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