Most analysts see Chevron ultimately winning the fight for Anadarko, but several say the oil major will have to pay up for the prize.
Energy giant Chevron may have to sweeten its $33 billion offer for Anadarko Petroleum after fellow driller Occidental Petroleum put a higher bid on the table, analysts say.
"To put the point even more strongly, Occidental is going head-to-head against a supermajor four times its size," he said. Paul Sankey, equity analyst at Mizuho Securities, believes Chevron could up its offer by $5 per share, but not much more. Right now, the odds are just as great that Chevron will stick with its original bid on the view that Anadarko shareholders favor its offer, he says.
The winning bid will likely have to fall in the ballpark of Anadarko's net asset value at roughly $76 per share, says Michael Bradley, managing director for equity sales at investment bank Tudor Pickering Holt.
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