Anadarko to pay $5.15 bln to settle pollution clean-up claims -source

Source: Reuters - Thu, 3 Apr 2014 18:29 GMT
Author: Reuters
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(Adds details of agreement, share price and background)

April 3 (Reuters) - Anadarko Petroleum Corp and its Kerr-McGee unit agreed to pay $5.15 billion to resolve environmental cleanup claims stemming from the 2009 bankruptcy of paint materials maker Tronox, a source familiar with the agreement told Reuters on Thursday.

Anadarko's stock rose 13 percent to $98 per share in afternoon trading on the New York Stock Exchange as word of a settlement circulated.

The deal, which will need approval by the U.S. Bankruptcy Court in Manhattan, ends two years of litigation brought by a trust for governments, tribes and individuals that held claims against Tronox, a business spun off by Kerr-McGee in 2005.

Tronox makes titanium dioxide used in paints and inherited heavy environmental liabilities that forced it into bankruptcy in 2009.

Judge Allan Gropper in December had found Anadarko and Kerr-McGee liable for up to $14 billion in clean-up costs, but the sides were debating the size of damages.

Anadarko had said it through the liabilities should be as little as $850 million. (Reporting by Nicholas Brown in New York and Tom Hals in Wilmington, Delaware; Editing by Grant McCool)

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