Cities Service Company agreed to be acquired by Occidental Petroleum Corporation after the California oil giant improved its offer.
In a statement issued here, the two companies said Occidental now had agreed, in the first step of a merger, to offer more cash for a reduced number of shares of Cities - $55 a share for 45 percent of its outstanding common stock. Occidental's original offer was for $50 a share for 49 percent. Cities will operate as a wholly owned subsidiary of Occidental, retaining its headquarters in Tulsa. Two of its directors will be elected to Occidental's board.