Occidental makes bid to buy Cities Service
Cities Service Company, which has been seeking a merger partner since being snubbed by Gulf Oil Corporation last week, received a $4.5 billion takeover offer from Occidental Petroleum Corporation.
A merger of the two concerns would create the nation's eighth biggest petroleum company, with annual revenues of more than $23 billion. Occidental currently ranks 11th and Cities Service 16th. Oil industry analysts said Occidental's offer may be the best available to Cities Service, even though it is well below Gulf's original $4.8 billion bid. Cities Service said its board of directors would consider Occidental's offer at a meeting on Monday, but will continue talks with other potential purchasers.