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Anadarko, Market Stunned By Judge’s $14.2 Billion Penalty Over Kerr-McGee Merger

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By Darren Barbee, Hart Energy
December 13, 2013

In a surprising turn, the 7-year-old blockbuster merger of Anadarko Petroleum Corp. (NYSE: APC) and Kerr-McGee could cost Anadarko a whopping $14.2 billion — about a third of Anadarko’s market capitalization.

On Dec. 12, a U.S. bankruptcy judge issued an opinion saying that Anadarko should be held liable for environmental and health claims related to Kerr-McGee’s spinoff Tronox Inc. Initially, the government and environmental plaintiffs sought $25 billion.

Judge Allan Gropper’s opinion said that APC and Kerr-McGee acted with intent to hinder and delay Tronox creditors as the companies left ...

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