Cities Service agrees to Occidental takeover
August 27, 1982
Los Angeles
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.