What is the value (per share of Anadarko stock) of the original OXY offer? What is the value of the revised OXY offer? Assume that the standalone value of Anadarko (pre-merger) is $40 billion, the standalone value of OXY is $60 billion, and the value of transaction costs and restructuring expenses have been included in these standalone values. In addition, assume the projected synergies are worth $10 billion, that OXY's African assets will be sold for $8.8 billion, and that the Berkshire-Hathaway financing package is fairly priced at $10 billion. Finally, assume OXY finances the cash portion of the bid (less the asset sale and the Berkshire-Hathaway funding) with new debt.

Answer rating: 100% (QA)

Question Original OXY offer Value per share of Anadarko stoc... View the full answer