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Anadarko approached Apache with offer that was rejected – source

NEW YORK – U.S. oil and gas exploration and production company Anadarko Petroleum Corp has approached Apache Corp with a potential acquisition as low crude oil prices prompt companies to seek merger partners, according to a person familiar with the matter.

The prolonged slump in crude oil prices has stirred talk of consolidation among U.S. shale companies, however so far no mega deals have been struck as bids and offers remain wide apart and financing is still available for most producers as they try to stay independent.

On Sunday, Bloomberg News reported that Houston, Texas based Apache, which has operations in Egypt, the North Sea and Texas, had rejected a takeover approach and hired investment bankers from Goldman Sachs Group Inc for advice.

Representatives for Apache and Anadarko declined to comment on the matter.

Anadarko’s investors panned a potential combination, sending shares down as much as 6 percent. The stock recovered some losses and was down $2.60, or 4 percent, at $65.41 in midday New York Stock Exchange trading. Apache shares fell 2.2 percent to $52.75.

Anadarko, based a 30-minute drive from Houston in The Woodlands, Texas has a market capitalization of nearly $35 billion while Apache’s market value is around $20 billion.

In related news, Anadarko Petroleum posts loss as crude prices slump.

(Additional reporting by Ernest Scheyder in Williston, North Dakota; Writing by Anna Driver and Mike Stone; Editing by Terry Wade and David Gregorio)

This article was from Reuters and was legally licensed through the NewsCred publisher network.