Court Refuses to Halt Hostile Bid for Pennzoil

A federal judge in Texas refused to halt Union Pacific Resources Group Inc.’s $6.4-billion hostile bid for rival Pennzoil Co. U.S. District Judge Terry Means said Pennzoil’s motion seeking to block the bid was rendered moot by Union Pacific’s release this week of confidential documents outlining strategy behind its unsolicited takeover offer. Union Pacific offered $84 a share for 50.1% of Pennzoil stock and in a two-tiered bid would acquire the remaining shares for $84 apiece in Union Pacific stock. The deal, valued at $6.4 billion, would form the largest U.S. independent oil exploration and production company. In July, Pennzoil’s board rejected the unsolicited bid and sought the release of confidential Union Pacific documents disclosing declining reserves from its rival’s core U.S. oil and natural gas fields. Houston-based Pennzoil shares fell 13 cents to close at $77.44; Fort Worth-based Union Pacific shares fell 6 cents to close at $26.44. Both trade on the New York Stock Exchange.