Shares of Occidental Petroleum (OXY - Get Report) were down 2.3% in trading after Warren Buffett's Berkshire Hathaway (BRK.B - Get Report) announced it would invest a total of $10 billion in Occidental in order to fund its proposed purchase of Anadarko Petroleum (APC) .
Berkshire will receive 100,000 shares of cumulative perpetual preferred stock as part of the deal with a liquidation value of $100,000 per share.
"We have long believed that Occidental is uniquely positioned to generate compelling value from Anadarko's highly complementary asset portfolio. We are thrilled to have Berkshire Hathaway's financial support of this exciting opportunity," said Vicki Hollub, president and CEO of Occidental. "We look forward to engaging with Anadarko's board of directors to deliver this superior transaction to our respective shareholders."
Earlier this month, Anadarko agreed to accept Chevron's (CVX - Get Report) $33 billion offer for the company. However, on Monday, the company's board announced that it determined that proposal from Occidental could reasonably be expected to result in a superior proposal. Occidental made itsproposal to acquire Anadarko for $26 per share on April 24.
Bloomberg reported that an Occidental Petroleum jet flew to Omaha, Nebraska, Warren Buffett's hometown, over the weekend.
Shares of Anadarko were falling 0.22% in trading Tuesday.
Anadarko is a holding in Jim Cramer's Action Alerts PLUS charitable trust.