Warren Buffet Boosts Moxy Oxy

Written by:

Katie Mehnert

Grab some popcorn. This is getting good.

Last week Oxy showed moxy and made a big bold bid, challenging Chevron’s $33 billion buyout of Anadarko.

And then it got quiet until yesterday morning when Anadarko's board announced it was considering the offer.

This morning CNBC reports, Berkshire Hathaway has committed a $10 billion investment in Occidental Petroleum contingent on the company completing its proposed takeover of Anadarko Petroleum.

Warren Buffet, Berkshire's billionaire chairman, isn't just bullish on Anadarko's assets or Oxy's view of the future, he is bullish on women. His essay in Fortune in 2013 talks about his optimism for the future. Today's news shows he's putting his money where his mouth is. Bloomberg reported that an Oxy jet flew to Omaha, Nebraska, Warren Buffett's hometown, over the weekend.

“We are thrilled to have Berkshire Hathaway’s financial support of this exciting opportunity,” said Occidental CEO Vicki Hollub in a press release.

According to news reports, the recent bid is old news. Hollub told Bloomberg TV last week it made a move to acquire in 2018, with a vision for Anadarko a while. And while Oxy dwarfs the size of Big Oil, it's never lacked ambition.

Berkshire has made big plays and have played the commodities space with recent investments in Canada and Phillips 66. Bershire's big boost is a sign that this saga isn't going to end just yet. Berkshire will receive 100,000 shares of cumulative perpetual preferred stock as part of the deal with a liquidation value of $100,000 per share.

Is Silicon Valley next to pitch?

This story is developing. Everyone in Houston knows now that spring is over. The weather is getting hot here in the Energy capital.

Photo credit: CNBC.com


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