The offer, which included “a modest premium,” was for an all-stock transaction, Anadarko said.
“Based on public information and Apache’s historic financial and operating underperformance, the proposed transaction offered shareholders of both companies numerous value-creation opportunities given Anadarko’s demonstrated success at building value through operational excellence, proven capital allocation, and active portfolio management,” the statement said.
Anadarko said it sought a confidentiality agreement “for the purpose of exploring the merits of a potential transaction.”
Those efforts “were summarily rejected, and no discussions of substance occurred.”
Lacking access to detailed nonpublic information and determining that Apache shares trade “at or near full value currently,” Anadarko said, it withdrew the offer.
Apache reported third-quarter oil and gas production of 542,000 boe/d from the US, Canada, Egypt, and UK North Sea. It estimated global proved reserves at yearend 2014 of 2.396 billion bbl.
For the third quarter, Apache reported a net loss of $5.7 billion, which included a $3.7 billion ceiling-test write-down related to the decline in oil and gas prices and a $1.5 billion charge related to an increase in the valuation allowance on deferred tax assets.
Apache reported total assets of $27.812 billion and shareholders’ equity of $9.809 billion as of Sept. 30.