Pennzoil Shares Plummet on Bid Warning

Pennzoil Co. shares plunged on news that Union Pacific Resources Group threatened to end its $6.4-billion takeover bid unless Pennzoil enters into talks or proves it’s worth the money. Union Pacific Resources cited Pennzoil’s recent disappointing drilling results off Azerbaijan and the continued refusal of Pennzoil’s board to negotiate in threatening to end its $84-a-share bid Monday, a week before its tender offer is set to expire. Pennzoil responded that it had no plans to negotiate. The Houston-based company said its board on Tuesday unanimously reaffirmed its opinion that UPR’s offer is inadequate. Union Pacific wants to buy Pennzoil for its extensive oil and gas properties. It would also acquire the nation’s top brand of motor oil and the Jiffy Lube chain of oil change centers. Shares of Pennzoil fell $7.75 to close at $67.75 on the New York Stock Exchange. Fort Worth-based Union Pacific Resources shares rose 81 cents to close at $25.06, also on the NYSE.