Anadarko calls Occidental's takeover bid "superior" to Chevron's

Anadarko Petroleum Corp.'s board said Monday evening that Occidental Petroleum Corp.'s revised offer for the company is "superior" to Chevron Corp.'s bid, a move that gives Chevron 4 days to revise its offer. Chevron did not provide immediate comment.

Why it matters: It's the latest twist in a high-stakes battle to land the biggest oil mega-deal in years — one that will enhance the winner's position in the booming Permian Basin shale fields.

Where it stands: The move follows Occidental's move yesterday to sweeten its offer in a bid to undercut Chevron, its much larger rival. Occidental changed its $76-per-share offer to be 78% cash and 22% stock, compared to the 50-50 split in their prior bid.

The big picture: Late last month, Occidental said its total offer, including debt, was valued in the $57 billion range based on its share price at the time.

That's higher than Chevron's mid-April deal to acquire Anadarko at $65-per-share in a deal that would have been 75% stock and 25% cash, with a total value of around $50 billion including debt.

• Anadarko said Monday that Occidental's offer yesterday was a "superior proposal" under the terms of their merger agreement with Chevron.
• If Anadarko ends its agreement with Chevron, it will have to pay a $1 billion termination fee.

The intrigue: Occidental has bolstered its position in recent days by obtaining a $10 billion financing pledge from Warren Buffett, and, yesterday, a deal to sell Anadarko's assets in Africa to the oil-and-gas major Total if its bid is accepted.

Go deeper:

• The latest twists in the Occidental-Chevron battle for Anadarko
• What they're saying: The Anadarko drama