Texaco Adopts Poison Pill: Texaco Inc. said...

Texaco Adopts Poison Pill: Texaco Inc. said its directors have approved a new shareholder rights plan designed to make a hostile takeover of the oil company more difficult. The plan--known as a poison pill--allows shareholders to buy extra shares of Texaco stock at a steep discount. With more shares on the market, the cost of an unfriendly takeover would escalate sharply. The pill would be triggered if a suitor offering to buy the company acquired 20% or more of Texaco’s outstanding common stock and if the buyout offer does not meet certain conditions.