Anadarko Petroleum Corporation today announced it withdrew its offer to buy rival oil company Apache in what would have been the biggest takeover of a U.S. crude producer this year.
The proposed all-stock transaction, which included a modest premium, was based on public information and Apache’s historic financial and operating under-performance, according to Anadarko President and CEO Al Walker. The transaction offered shareholders of both companies numerous value-creation opportunities.
“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,” he said. “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and based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn.”
Houston-based Apache said it will continue to defend against follow up attempts to buy out the company.
Bloomberg reported Sunday an unidentified bidder had approached Apache and the company’s stock shares jumped more than 10% during midday on Monday. Apache shares had fallen 54% from its 2014 high prior to the takeover bid. The company is worth about $18 billion.