The Anadarko Petroleum logo is seen on a hard hat at the company's oil rig in Fort Lupton, Colorado.
Jamie Schwaberow | Bloomberg | Getty Images
On Monday, Anadarko Petroleum released new financial details about its proposed combination with Occidental Petroleum, which revealed that the acquirer did not expect to generate enough cash to cover its shareholder payments until 2022.
Activist investor Carl Icahn launched a campaign this month to accommodate four Occidental directors, arguing that their board of directors signed the $ 38 billion deal to prevent Occidental from becoming a takeover target. He has attacked the deal as too costly and for the lack of an Occidental shareholder vote.
Anadarko said in a regulatory filing that it changed the merger authorization in response to a lawsuit that it had not provided its shareholders with full details of cash sales. Shareholders will vote on the sale on August 8.
Anadarko spokesman did not immediately respond to requests for comment.
The revisions include estimates that the filing was made by Occidental's management and adjusted by Anadarko's executives who show the free cash flow of a standalone company would fall under dividend payments in each of the next three years. The deficit increased every year through 2021
Companies that do not generate enough free cash flow to cover expenses such as dividends usually have to borrow or sell assets to cover the deficit.
The new details also include an estimate of $ 8.4 billion of the value of Anadarko's stake in Western Gas Partners, a listed natural gas processing, storage and pipeline company. This percentage is expected to be offered for sale after the combination has taken place.