UPDATE: Morgan Stanley Maintains Overweight on Anadarko Petroleum After Supplemental Memorandum Submission

In a report published Tuesday, Morgan Stanley analyst Benny Wong maintained an Overweight rating on Anadarko Petroleum Corporation (NYSE: APC).

According to the report, recently, APC submitted its 502(h) claim and Supplemental Memorandum. Analysts believe the key element of the memo relates to the consideration of the “dilutive effects” of damages on APC's 502(h) claim, which drives the high-end of the Court's provisional damages ($14Bn).

“APC contests the Court's authority to make this determination and contends that the language of the reorganization plan specifies that they receive the same percentage as Class 3 claimants (78-100%) in their 502(h) claim,” the report noted. “Further, their 502(h) claim is specifically excluded from calculating the Class 3 creditors' recovery (how the Court calculated 2.8%). Meaning, APC's claim cannot be added to the creditor's claim (denominator) without adding the value of the E&P assets to the asset pool (numerator).”

APC closed Monday at $79.63 with shares trading up 1.56 percent.