P.M. BRIEFING : Texaco Moves to Deter Takeover
Texaco Inc., the nation’s third largest oil company, said today its board of directors adopted a new shareholder rights plan to deter possible hostile takeover attempts.
Under the plan, Texaco shareholders will receive rights to purchase a new series of junior preferred stock at the rate of one right for each share of common stock held at the close of business April 3, the company said.
“The board of directors was concerned that, without a rights plan in place, control of the company could be acquired in the open market without fair value being offered to each and every Texaco shareholder,” said President James Kinnear.
New York financier Carl Icahn, who made a $60-a-share bid for the company last year, owns about 42 million shares, or 17%, of Texaco’s stock.