Anadarko Petroleum (APC) Stock: Climbing On Takeover Offer

Anadarko Petroleum Corporation (NYSE: APC) is having an incredibly strong start to the trading session this morning, and for good reason. The company is the center of a bidding war between two of the world’s largest oil and gas producers. Today, we’ll talk about:

  • The bidding war;
  • what we’re seeing from APC stock as a result; and
  • what we’ll be watching for ahead.

APC Stock Climbs On Bidding War

As mentioned above, Anadarko Petroleum is having a great start to the trading session today after the company found itself in the middle of a bidding war. The stock recently climbed after it was announced that Chevron Corp was setting up a hostile takeover of the company for $50 billion.

However, news breaking today says that Occidental Petroleum Corp has made a $57 billion offer to take the company over. This bid represents a willingness to pay $76 per share of APC.

The bid comes after Occidental has made two other proposals to take the company over in late March. Should the takeover happen, Occidental will become the largest producer of oil in the west Texas Permian basin.

While Chevron is a much bigger player than Occidental, the takeover bid at $57 billion may mean that Occidental will win the bidding war. Nonetheless, APC and its investors will likely enjoy the back and fourth that we see throughout the war to take the company over.

What WE’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Anadarko Petroleum, the news proved to be overwhelmingly positive.

With two massive oil and gas companies working to take the company over, chances are that a highly valuable acquisition will take place relatively soon. Of course, this will lead to a strong return for investors.

So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:45), APC is trading at $71.59 per share after a gain of $7.47 per share or 11.65% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on APC. In particular, we’re interested in following the story to see if the bidding war leads to another bid from Chevron, outpacing the $57 billion bid that’s on the table. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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