Courtesy of Benzinga.
Shares of Andarko Petroleum (NYSE: APC) have spiked over the $96 level in mid-day action Thursday as Bloomberg reported the company entered into a settlement agreement related to the massive $25 billion suit by the US and Tronox (NASDAQ: TROX). The stock is up more than 12 percent at last check.
Tronox shares, meanwhile, initially spiked to around $25 but have since pared some of that gain. Tronox stock last traded at $24.75, up about 1.2 percent from Wednes
Anadarko has since issued a press release confirming the settlement of Tronox’s Adversary Proceeding. The company will pay plaintiffs $5.15 billion in total, made up of about $3.98 billion and 6-percent interest thereon from the filing of the complaint in May 2009.
Anadarko said a “significant cash position and available $5 billion credit facility provide flexibility in funding the settlement payment.” The company sees gross tax benefit of about $1.65 billion related to the settlement.
Al Walker, Anadarko’s Chair, President and CEO, offered the following statement: “This settlement agreement with the Litigation Trust and the U.S. Government eliminates the uncertainty this dispute has created, and the proceeds will fund the remediation and cleanup of the legacy environmental liabilities and tort claim. Investor focus can now return to the tremendous value embedded in Anadarko’s asset base, allowing our peer-leading operational and exploration results to again become the basis for valuation. We are grateful to our stakeholders who have maintained their confidence and trust in our people and our assets.”
