Oil and gas production company Anadarko Petroleum (APC) said on Monday that it would like to resume negotiations with Occidental Petroleum (OXY), which has offered to take over the company, because it feels that the proposal could result in a superior one to that proposed by rival Chevron (CVX).

Anadarko entered into a definitive merger agreement with Chevron on April 11 and Occidental’s offer was announced on April 24. Anadarko said that it is resuming the earlier negotiations with Occidental because Anadarko’s board of directors has “unanimously determined that the Occidental proposal could reasonably be expected to result in a ‘Superior Proposal’ as defined in the Chevron Merger Agreement.”

The Woodlands, Texas-based Anadarko said the Occidental proposal reflects “significant improvement” with respect to indicative value, terms and conditions and closing certainty as compared to any previous proposal Occidental made to Anadarko.

Under the terms of Occidental’s proposal, it would acquire Anadarko in a transaction worth $38 in cash and 0.6094 of a share of Occidental per each share of Anadarko.

By contrast, the Chevron merger would see it acquire Anadarko for $16.25 in cash and 0.3869 of a share of Chevron common stock per each Anadarko share.

Anadarko said that the Chevron deal remains in effect and its board affirmed its recommendation of the transaction with Chevron “at this time,” it added.

“There can be no assurance that negotiations with Occidental will result in a transaction that is superior to the pending transaction with Chevron,” Anadarko said. “Further, the terms of any transaction with Occidental may vary from those reflected in the Occidental Proposal.”

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