Anadarko has confirmed it made an approach to Apache in a potential takeover bid for the company while also admitting it has given up its pursuit.
The company said it had sent Apache a recent non-binding offer to acquire the company which it said would have been “highly accretive” to Anadarko.
Earlier reports which surfaced this week suggested the takeover approach had been made some month ago.
If the bid had been successful it’s estimated it would have created an explorer that pumps more crude than OPEC member Ecuador.
Despite rumours Apache was in talks with Goldman Sachs to advise on its options, Anadarko has since said it has pulled out of the bid.
A spokesman said: “Our efforts to enter into a mutually acceptable confidentiality agreement for the purpose of exploring the merits of a potential transaction were summarily rejected and no
discussions of substance occurred.
“We are unwilling to pursue the transaction without access to detailed non-public information, and based on our analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn.”
Apache last week reported a smaller-than-expected adjusted loss and boosted its 2015 production forecast.
Its stock rose about 13 percent Monday, valuing it at more than $20 billion. Anadarko, whose shares have fallen almost 18 percent this year through Monday, has a market valuation of about $34.5 billion.