Occidental Petroleum said Thursday that it has paid Los Angeles financier David H. Murdock $86.1 million to redeem the preferred stock that Murdock acquired when Occidental bought Iowa Beef Processors in 1981.
The transaction ends the association between Murdock, a one-time Occidental board member, and the Los Angeles-based oil company.
Murdock hasn't been actively involved with Occidental since the company repurchased his 5% stake in Occidental common stock in July, 1984, for $194 million. The price represented a 42% premium over the market value at the time.
As part of the repurchase agreement, Murdock agreed not to buy any Occidental common or preferred stock for 10 years and gave Occidental the right of first refusal on his preferred shares. He also resigned from the board.
Murdock and Occidental Chairman Armand Hammer were once friendly, but their relationship reportedly soured, especially after Murdock opposed Hammer on Occidental's venture to develop a coal mine in China, according to reports at the time. Neither Murdock nor Occidental has commented publicly on the reports.
Occidental said it paid Murdock $117.25 for each share of $14 cumulative preferred stock. The stock last traded publicly on the New York Stock Exchange on Nov. 11 for $117 a share.