Warren Buffett is getting involved in a rare bidding war unfolding in the energy industry.
Berkshire Hathaway has committed a $10 billion preferred stock investment in Occidental Petroleum contingent on the company completing its proposed takeover of Anadarko Petroleum. Last week, Occidental made a rival bid for the oil and gas driller, challenging Chevron’s $33 billion buyout of Anadarko.
Shares of Occidental fell 4% on Tuesday, while Chevron’s stock popped nearly 3%. A company’s stock price often falls when investors believe it is about to acquire a company. Anadarko’s shares fell about 1.5%.
