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Buffett Backs Occidental’s Anadarko Bid With $10 Billion (3)

April 30, 2019, 2:26 PMUpdated: April 30, 2019, 3:06 PM

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 ...