T. Rowe Price Group Inc, Occidental’s sixth largest shareholder with 21.1 million shares of the oil company intends to vote against the Occidental Petroleum Corp board of directors at the annual meeting on Friday.
Occidental will not allow shareholders to vote on its bid for Anadarko Petroleum Corp which shareholders oppose. On Sunday Occidental increased the cash component of its $38 billion bid to acquire Anadarko, which led Anadarko on Monday to name Occidental’s $76-a-share offer as superior to that submitted by Chevron Corp, requiring Chevron by Friday to revise its offer or walk away.
The company also removed a requirement for Occidental shareholders to approve the deal. “We don’t feel we have any choice,” said fund manager John Linehan, portfolio manager at T. Rowe Price. “We really struggle to understand the logic of not putting a transformational deal to your shareholder base.”
“The decision to increase the cash portion of the offer was designed to address Anadarko’s need for greater certainty the deal would go ahead,” said Occidental Chief Executive Officer Vicki Hollub on Monday.