Are you a former employee of Anadarko Petroleum Corp. (APC) and received Occidental stock in the merger? Robbins LLP is investigating breaches of fiduciary duty by the officers and board of directors of APC.

Was Anadarko Petroleum Corp. (APC) and Occidental Petroleum Corp (OXY) merger unfavorable?

On May 20, 2019, activist investor Carl Icahn sued Occidental Petroleum Corp over its $38 billion purchase of Anadarko, stating that the deal was "fundamentally misguided and hugely overpriced." The lawsuit also stated that the acquisition was "little more than an enormous bet on the price of oil" and that "management's dreams of glory require placing the stockholders' dividends at risk." Despite the opposition, the merger was completed on August 8, 2019, with Occidental's CEO stating that synergies of the two companies would result in "annual capital production that will moderate near-term growth from 10% to 5% on a combined basis" and annual production growth of 5%. However, by August 12, 2019, Occidental reduced the combined growth targets from 10% to 5%. Then, on November 5, 2019, Occidental announced that total combined company production growth would be just 2%. On this news, Occidental's stock fell to $39.61 per share, representing a decline of 10.45% from its trading price of $44.23 per share on November 4, 2019. After conducting an analysis of the value of Anadarko's stock before and after the merger, we found that the stock today is worth $4,687,890,464 less than the value of the stock immediately prior to the merger.