Chevron Not To Pursue Anadarko Deal

(RTTNews) - Chevron Corp. (CVX) said Thursday that it will not increase its offer to buy Anadarko Petroleum Corp. (APC), and expects termination of the Merger Agreement.

"Winning in any environment doesn't mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal," Michael Wirth Chevron's chairman and Chief Executive Officer said.

According to the terms, if the deal is terminated, Anadarko has to pay Chevron a termination fee of $1 billion.

Chevron also plans to raise its share buyback by 25 percent to $5 billion per year.

On Monday, Anadarko Petroleum had said it received a revised acquisition proposal from Occidental Petroleum Corp. (OXY) on May 5, that is superior to Chevron proposal.

As per the terms of the Revised Occidental Proposal, Occidental would acquire Anadarko for $59.00 in cash and 0.2934 Occidental stock per share of Anadarko.

In the pre-market trade, APC is trading at $73.99, down $1.93 or 2.54 percent. But, CVX is trading at $121.08, up $3.51 or 2.99 percent.