Doesn’t the sale make Oxy more attractive to a buyer like XOM or Chevron?
15 replies (most recent on top)
@ax If I were Buffett, I would have zero interest in dumping more capital into OXY.
He exercises immense control over Vicki now. No need to throw more capital into this money pit she created.
The Oxychem sale ABSOLUTELY is a prelude to an eventual sale of the assets sitting under OPC's acreage.
@g5
Totally out of context!
It was Gulf Oil prior to CVX acquisition and legacy Oxy company Cities Services.
Back in 1982, Cities Service Co. of Tulsa, Okla., was trying to escape a hostile takeover by Mesa Petroleum, the Amarillo, Texas, oil company run by legendary raider T. Boone Pickens Jr.
Cities Service turned to Gulf Oil of Pittsburgh as its “white knight” and bought back its stock from Mesa for $225.5 million. But Gulf pulled out of the merger amid opposition from the Federal Trade Commission. Cities was acquired by Occidental that same year.
Cities sued Gulf to recover what it had paid Mesa, and a trial judge in 1996 awarded Cities that amount in damages plus interest. By mid-1999, with compounding, that original $225.5 million had grown to nearly $1 billion.
Pickens wasn’t finished--he went after Gulf in 1984, but ultimately the company hooked up with Chevron instead
@g5
totally out of context! Gulf Oil and Cities Service, not CVX!
Back in 1982, Cities Service Co. of Tulsa, Okla., was trying to escape a hostile takeover by Mesa Petroleum, the Amarillo, Texas, oil company run by legendary raider T. Boone Pickens Jr.
Cities Service turned to Gulf Oil of Pittsburgh as its “white knight” and bought back its stock from Mesa for $225.5 million. But Gulf pulled out of the merger amid opposition from the Federal Trade Commission. Cities was acquired by Occidental that same year.
Cities sued Gulf to recover what it had paid Mesa, and a trial judge in 1996 awarded Cities that amount in damages plus interest. By mid-1999, with compounding, that original $225.5 million had grown to nearly $1 billion.
Pickens wasn’t finished--he went after Gulf in 1984, but ultimately the company hooked up with Chevron instead
Pretty sure this ends any VSP offers or layoffs since Oxy is losing so many employees to BH OxyChem. The only a VSP or layoffs happen would be for oil prices to tank.
In Chevron’s mind the billion dollars was payback for the 775 million Oxy won from Chevron back in 1999.
VH hates Chevron and Mike Wirth, because of the Anadarko break-up fee payment to CVX -1 billion we paid CVX! Remember her famous CNBC performance where she said “Andadarko is ours to have” it was so embarrassing to see an executive be so emotional about potentially loosing a business deal.
Worse CEO in oil and gas history.
It won’t happen unless she is forced to by the board.
Berkshire will end up buying Oxy O&G when oil prices go down another $10. No rush to buy all at once
Yep
Hmmmm.....Yes.
@ax Buying just a little bit more of an E&P company with a chemical subsidiary is quite different than owning a quarter of an E&P company and 100% of a chemical company. It’s pretty funny how some people think they can offer investment advice to WB.
@bt “Our dropouts” and “we know” suggest you believe you are actually somebody at the company. The truth is you sit in a little cube every day knowing nothing at all, especially who is a dropout and who is not. You’re funny.
Hopefully Chevron will clean house after the purchase. Most of our dropouts who couldn't hack it ended up at Occidental so we know what the gulf in ability is between the two.
Yes, likely Chevron.
Depends on what the money is used for after the sale. I wonder why Buffett just does not buy 10 billion in stock and that should put him close to 50% ownership of a public company, but then again I don't have 300 billion in cash laying around.