Pennzoil-Texaco

Press, 10 January 1986, Page 8

Pennzoil-Texaco

NZPA-Reuter New York Pennzoil, which won a record 5U510.53 billion (JNZ21.06 billion) judgment against Texaco, has confirmed the market rumour that sent its stock soaring on Tuesday - that Texaco had attempted to buy the smaller oil company. But it said it had rebuffed the offer and was asking the Securities and Exchange Commission and two other groups to investigate trading in its shares which jumped an extraordinary $U519.75 in heavy trading. After a SUSIS swing Pennzoil’s stock closed SUSB.SO down at JU574.50. Texaco closed just slightly off at JU530.375. Pennzoil said it asked the New York Stock Exchange (N.Y.S.E.) twice to halt trading on Tuesday because of the rumours which it said “were planted prior to the time Pennzoil even received a pro-

posal from Texaco”.

It said Texaco’s cash merger proposal was far different from the rumoured stock transaction, but did not elaborate.

Independently of Pennzoil’s request, the New York Stock Exchange has been investigating trading in the stock. A spokesman said the probe could take weeks but was routine.

Pennzoil also said it believed “the leaks must have emanated from the Texaco side.” Texaco, said it resented the allegation, which it said was untrue.

Two months ago a Texas state court jury awarded Pennzoil $U510.53 billion (1NZ21.06 billion) damages after deciding Texaco had improperly interfered in a 1983 merger agreement between Pennzoil and Getty Oil. Texaco later acquired Getty.