Seeking Alpha

Confirmed: Anadarko settles Tronox cleanup case for $5.15B

  • Anadarko (APC +12.1%) confirms it has entered into a settlement with the plaintiffs in the Tronox (TROX +1.6%) case to resolve all claims against Kerr-McGee, agreeing to pay $5.15B to settle environmental claims left behind when it bought the company for $18B in 2005.
  • APC expects to record a gross tax benefit of ~$1.65B associated with the settlement, offset by ~$1.1B in uncertain tax positions, resulting in a net tax benefit of ~$550M.
  • The U.S. had initially sought $25B from APC to clean up 2,772 sites and compensate ~8,100 TROX claimants, and a court in December said APC could expect to pay damages as low as $5.2B and as high as $14.2B.
Comments (2)
  • lackeyla
    , contributor
    Comments (2) | Send Message
     
    Too far to fast.

     

    While this is great news it should not put the stock at its 52 week high in a single 1/2 day trading session.

     

    I think a significent pull back should be in order Friday.
    3 Apr 2014, 10:52 PM Reply Like
  • sydniberninger
    , contributor
    Comments (5) | Send Message
     
    Stock was valued at 97, lost the case which amounted to 10-30 a share dropped 20. Got low end settlement so should be off 10 from 97. Closes higher then it was before it lost 5 billion.only in the yellen casino do losers walk out with more cash!
    4 Apr 2014, 02:04 AM Reply Like
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