MCO Holdings and Maxxam, said their boards...

MCO Holdings and Maxxam, said their boards reached agreement in principle on revised terms for their merger, pending since September, 1986. Los Angeles-based MCO has energy and real estate operations. Maxxam, based in New York, has interests in forest products, real estate and welding equipment. The firms, both publicly traded companies controlled by Houston financier Charles E. Hurwitz, also reported a settlement of lawsuits by certain Maxxam stockholders relating to the merger terms.