WASHINGTON, April 30 (Xinhua) -- U.S. multinational conglomerate Berkshire Hathaway Inc. has committed to a 10 billion-U.S.-dollar preferred stock investment in Occidental Petroleum Corporation, according to a statement issued by the petroleum company Tuesday.
The investment, the statement said, is contingent upon Occidental entering into and completing its proposed acquisition of Anadarko Petroleum Corporation.
Berkshire Hathaway, based in Omaha, Nebraska and founded by legendary investor Warren Buffett, will receive 100,000 shares of cumulative perpetual preferred stock with a liquidation value of 100,000 dollars per share, together with a warrant to purchase up to 80 million shares of Occidental common stock at an exercise price of 62.5 dollars per share, the statement said.
The preferred stock will accrue dividends at 8 percent annually, it added.
Houston, Texas-based Occidental proposed on April 24 to acquire Anadarko for 76 dollars per share, higher than rival Chevron Corporation's initial bid for 65 dollars per share.
Anadarko, based in The Woodlands, Texas, announced in a statement Monday that "it intends to resume negotiations with Occidental Petroleum Corporation in response to Occidental's proposal to acquire Anadarko."
Noting that Anadarko entered into a definitive merger agreement with Chevron on April 11, the Anadarko statement said the company's board of directors "has unanimously determined that the Occidental Proposal could reasonably be expected to result in a 'Superior Proposal' as defined in the Chevron Merger Agreement."
"The Chevron Merger Agreement remains in effect," it added.
