A report from Reuters earlier Monday said Anadarko's board decided Sunday that Occidental's $38 billion cash-and-stock bid could lead to a deal that would be superior to the $33 billion deal it reached earlier in April with Chevron (CVX - Get Report) .
"Anadarko is resuming its earlier negotiations with Occidental because Anadarko's board of directors, following consultation with its financial and legal advisors, has unanimously determined that the Occidental Proposal could reasonably be expected to result in a "Superior Proposal" as defined in the Chevron Merger Agreement," Anadarko said in a statement Monday.
"The Occidental Proposal reflects significant improvement with respect to indicative value, terms and conditions, and closing certainty as compared to any previous proposal Occidental made to Anadarko," the company said.
Occidental last week offered to acquire Anadarko for $38 in cash and 0.6094 of a share of Occidental common stock. Chevron offered $16.25 in cash and 0.3869 of a Chevron common share.
Occidental already had been interested in acquiring Anadarko before the Chevron deal was announced.
If Chevron loses out in the bidding war it could walk away with a $1 billion so-called breakup fee from Anadarko, according to Reuters.
Anadarko shares rose 0.3% on Monday to $73, Occidental fell 1.8% to $60.20 and Chevron was up 0.4% to $117.58.