Occidental Petroleum ( OXY ) made a formal proposal to buy Anadarko Petroleum ( APC ) in a deal that would value the independent oil producer at $57 billion and trump a pending takeover proposal from Chevron Corp. ( CVX ) Occidental said it would pay $76 for each Anadarko share, with a combination of $38 in cash and 0.6094 Occidental shares, a price is says represents a 20% premium to the group's pending deal with Chevron. Occidental said its deal would improve free cash flow by $3.5 billion, via cost reductions and synergies, and is superior to Chevron's in both financial and strategic terms. "Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko's assets not only in the Permian, but globally," said Vicki Hollub, President and Chief Executive Officer of Occidental.