After the close of the market on Thursday April 11, 2019, Chevron (Ticker: CVX) announced its intentions to acquire Anadarko (Ticker: APC), by making a bid that is the equivalent to $65 per share of APC. It marked the first move in the final contest for ownership control of APC, a competition that was ultimately won by Occidental Petroleum (Ticker: OXY). Please read the case for the full story and answer the following questions.

1. The share price of APC rose from $46.80 on Thursday (4/11) to close at $61.78 on Friday (4/12) afternoon, the first trading day after the deal details were announced. Provide one reason why the share price of APC did not rise all the way to $65, the value offered by CVX for each share of APC.

1. The share price of CVX fell from $125.99 to $119.76 over the same period. Why did CVX's stock price fall?

1. By how much did the combined value of CVX and APC change between 4/11 and 4/12. What can you infer from that?

Answer rating: 100% (QA)

Heres the breakdown of why the share prices reacted the way they did and the change in combined value 1 Why APC Didnt Reach 65 Several reasons could e... View the full answer