Political Dispute Jeopardizes $8B Occidental Deal

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March 26 (Bloomberg) -- Bloomberg’s Elliott Gotkine reports that Occidental’s $8 billion deal to sell a stake in its Middle East business may be stalled by a political dispute in the region on Bloomberg Television’s “Countdown.”

In the middle east region, isn't it?

It would certainly seem that way.

They are the fourth biggest oil major.

We are talking about countries like bahrain, the united arab emirates, and qatar.

The initial plan was to sell a 25% stake in its middle east business to a consortium involving oman, the united arab emirates, and qatar.

Now that seems to be put on ice.

The chief executive of occidental petroleum said that the notion that they would somehow cooperate with each other in an oil investment is difficult at best right now.

This is an understatement.

The plan seems to be on ice.

Plan b would be perhaps breaking up that business or maybe selling different assets.

It would be simpler and ultimately, it may affect yields.

That is something that occidental is doing to try to boost their share price.

The fallout between the gulf states and the role of the muslim brotherhood has taken its toll on local stock markets over recent weeks.

Remind us where this spat came from and how it could be resolved.

They initially took a hit but recovered when many analysts started thinking -- it began at the beginning of the month.

Saudi arabia, bahrain, and the united arab emirates recalling their ambassadors from qatar.

Normally, when there are disagreements, they do it behind closed doors.

This was an unprecedented airing of dirty laundry.

Many expected qatar to say ok, we are going to tone down the comments by muslim brotherhood supporting clerics on al jazeera.

In fact, they came out and said that foreign policy is not negotiable.

It is not clear how much leverage they have on qatar, and but certainly, this is not going to do much for investor sentiment.

Coming up, a perfectly posh

This text has been automatically generated. It may not be 100% accurate.


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