Occidental Petroleum (OXY - Get Report)  made a formal proposal to buy Anadarko Petroleum (APC - Get Report) in a deal that would value the independent oil producer at $57 billion and trump a pending takeover proposal from Chevron Corp. (CVX - Get Report)

Occidental is offering $76 for each Anadarko share, marking a 20% premium to the group's pending deal with Chevron.

Anadarko, which is a part of the members-only investing club Action Alerts Plus' stock portfolio, is now caught in the middle of a bidding war between Occidental and Chevron, according to Jim Cramer.

And for that reason, he added, they're holding onto the stock.

"You got to hold on to it. We got lucky, you could say, we held onto it...We've only held on to one in the 15 years I've been doing this crazy thing and now we're holding on to Anadarko."

This is the fourth bid made by Occidental Petroleum for Anadarko, but the first since Anadarko and Chevron entered a deal this month.

Shares of Anadarko Petroleum Corp. jumped more than 11% to $71.28 in morning trading.

Related. Who Might the Oil Majors Acquire Next After Chevron's Anadarko Deal?

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