Texaco Weighs Possible Alliances, Acquisitions

Texaco Inc., the third-largest U.S. oil company, is examining possible alliances and acquisitions to help it weather the lowest oil prices in 12 years, Chairman and Chief Executive Peter Bijur told analysts. Bijur’s comments came a day after Exxon Corp. agreed to buy Mobil Corp. for about $75.3 billion to form the world’s largest publicly traded oil company. Bijur, speaking to analysts at the company’s headquarters in White Plains, N.Y., wouldn’t comment on whether Texaco is in talks with anyone, but he did say the company won’t rush into a merger. Texaco also said it’s implementing a cost-cutting program that will yield $400 million in pretax savings next year and $600 million by 2000. The company has budgeted capital spending of $4.3 billion for 1999. It budgeted $4.6 billion for 1998 but estimates it will have spent $4 billion this year. Shares of Texaco fell $2.81 to close at $54 on the NYSE.