Australian Raises Texaco Stake for 2nd Time in Week

Australian financier Robert Holmes a Court said Friday that he had raised his stake in Texaco Inc. to 9.5%, the second time this week that the investor disclosed an increased holding in the troubled oil giant.

The move means Holmes a Court has funneled more than $800 million into Texaco stock, one of the biggest single investments in an American company, since he began buying shares more than three months ago.

Oil industry analysts said the increased stake intensified speculation that Holmes a Court believes that a settlement is looming in the multibillion-dollar legal battle between Texaco and Pennzoil Co., which could cause Texaco’s stock to soar in value and make his investment extremely profitable.

Others speculated that Holmes a Court, known for his takeover forays, may seek to acquire Texaco himself, although he has stated previously that his Texaco holdings were only for investment purposes.

Hostile Takeover

Analysts also theorize the reclusive Perth-based investor may believe another outsider might attempt a hostile takeover of Texaco, which also could raise the value of Holmes a Court’s stake.

“You put that kind of money there, you’re not taking a chance, it’s a matter of timing,” said Michael W. Lamb, head of Wealth Monitors Inc., a research and mutual fund concern in Kansas City, Mo. “You’ll see something come out of this within 90 days.”

Joel D. Fischer, oil analyst at the New York investment firm Drexel Burnham Lambert Inc., said: “Holmes a Court’s increasing position certainly whets the appetite of a speculative group in the investment community that has this sense time is running out. Things are going to happen sooner rather than later.”

The Holmes a Court group told the SEC two days earlier that it had raised its stake in Texaco to 7.4% from 6.4%.