Occidental is sued by shareholders, bondholders over Anadarko merger

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Occidental Petroleum Corp has been sued by investors who claim they suffered billions of dollars of losses because the heavily indebted company ...

Occidental Petroleum Corp has been sued by investors who claim they suffered billions of dollars of losses because the heavily indebted company concealed its inability to weather plunging oil prices, after paying US$35.7 billion to acquire Anadarko Petroleum Corp.

The proposed securities class action was filed late Tuesday in a New York state court in Manhattan on behalf of former Anadarko shareholders who swapped their stock for Occidental shares, and investors who acquired US$24.5 billion of Occidental bonds that helped fund the August 2019 merger.

As of Tuesday, Occidental's market value had dropped to US$13 billion from about US$44 billion when the merger closed. Some of Occidental's new bonds traded at between 60 and 90.5 cents on the dollar.Occidental spokeswoman Melissa Schoeb declined to comment. Bank of America, Citigroup, JPMorgan and Wells Fargo, which helped underwrite Occidental's bonds, were also sued for alleged inadequate due diligence.

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