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World Stock Markets Trading Discussion - Nettled neutrality


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THE  OXY........MORON DEAL

So Oxy gets Anadarko a company that generates no free cash flow

And a lot of expensive debt.

And Warren getting 800 million a year 

Winners:

Warren B

Anadarko shareholders who take the cash

Chevron shareholders

Losers:

Oxy shareholders

(lower oil prices or higher interest ratyes will tank the dividend).

Oxy bondholders

(lower oil prices or higher interest rates could see the bonds downgraded to junk).

This exercise in financial enginering provides lots of opportunity for capital structure arbitrage. 

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