Anadarko to Acquire Union Pacific Resources

Houston-based Anadarko Petroleum Corp., an oil and natural gas explorer, said it will buy Union Pacific Resources Group Inc. for about $4.4 billion in stock and $2.8 billion in assumed debt, giving it cash to finance drilling projects and more oil land in North America than any rival. Anadarko will exchange 0.455 of a share, or $17.60, for each Union Pacific Resources share, 21% above Friday’s close. The combined company will have $4.1 billion in debt and annual cash flow of $1.8 billion, leaving it money to spend on drilling. Anadarko shares fell $4.19 to close at $34.50 on the NYSE. Investors pushed down the shares because they had considered Anadarko itself a takeover target. Union Pacific Resources closed up 19 cents at $14.69 on the NYSE. The Fort Worth, Texas-based firm was spun off from Union Pacific Corp. in 1996. It drills on property formerly owned by the railroad company.