Warren Buffett’s Berkshire Hathaway Inc. will invest $10 billion in Occidental Petroleum Corp. to help the oil producer in its $38 billion bid for Anadarko Petroleum Corp.
Berkshire will receive 100,000 shares of preferred Occidental stock that will accrue dividends of 8 percent a year, according to a statement Tuesday. Buffett’s intervention, which is contingent on the deal for Anadarko closing, comes a day after Anadarko agreed to serious negotiations with Occidental despite having accepted a lower offer earlier this month from Chevron Corp.
Occidental’s smaller size and financial resources make its offer riskier for Anadarko shareholders than the $33 ...