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Anadarko Petroleum sheds new light on tax finances

The Anadarko Petroleum logo is visible on the firm's hard hat on the company's offshore oil platform at Fort Lupton, Colorado.

Jamie Schwaberow | Bloomberg | Getty Images

Anadarko Petroleum on Monday released new financial details of its proposed combination with Occidental Petroleum, which revealed that its acquirer does not expect to generate enough cash to cover its shareholders' payments by 2022.

Investment investor Carl Icahan launched a campaign to remove four Occidental directors this month, arguing that his board had made a $ 38 billion deal to prevent Occidental from becoming a takeover target. He attacks the deal as too expensive and due to lack of shareholder votes.

Anadarko stated that in her regulatory filing, she amended her merger proxy in response to a case alleging that she did not provide her shareholders with full cash information. Its shareholders must vote on the sale on August 8.

Anadarko's spokesman did not immediately respond to requests for comment.

The revisions include estimates that the filing request was submitted by Occidental management and adjusted by Anadarko's executives, showing that the freelance cash flow of the sole proprietorship will fall below the dividend payment over each of the next three years.

Companies that do not generate enough free cash flow to cover expenses as dividends usually have to borrow or sell assets to cover the deficit.

The new details also include an $ 8.4 billion valuation of Anadarko's share of Western Gas Partners, a publicly traded natural gas processing, storage and pipeline company. This share is expected to be offered for sale after the combination is completed.

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