1.6 At a time when natural gas and oil prices were at record levels, oil and natural...
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1.6 At a time when natural gas and oil prices were at record levels, oil and natural gas producer Andarko Petroleum announced the acquisition of two competitors, Kerr-McGee Corp. and Western Gas Resources, for
$16.4 billion and $4.7 billion in cash, respectively. The acquired assets complemented Andarko’s operations, providing the scale and focus necessary to cut overlapping expenses and concentrate resources in adjacent properties. What do you believe were the primary forces driving Andarko’s acquisition? How will greater scale and focus help Andarko cut costs? What are the assumptions implicit in your answer to the first question?
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Related Book For
Mergers Acquisitions And Other Restructuring Activities
ISBN: 9780128150757
10th Edition
Authors: Donald DePamphilis
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