Expanded ChevronTexaco Role Seen In Dynegy Shakeup
By BOB SECHLER
Of DOW JONES NEWSWIRES
AUSTIN, Texas -- ChevronTexaco Corp. (CVX) appears poised to take a more proactive role in the management of Dynegy Inc. (DYN), some observers said, even if it didn't call the shots in Dynegy's executive shakeup Tuesday.
"I think they probably will keep a closer lookout" on Dynegy , said Bill Chapman of Victory Capital Management, which owns a stake in ChevronTexaco.
Bear Stearns & Co. analyst Raymond Leung also said in a research note Tuesday that the changes at Dynegy "may indicate potential for a more proactive approach by ChevronTexaco to restore some credibility and support" to Dynegy .
Still, Victory Capital's Chapman said it remains unclear how big an additional role ChevronTexaco will assume or whether it's likely to include new investment in Dynegy .
ChevronTexaco is currently Dynegy's largest shareholder, with a 27% stake in the company.
Dynegy announced management changes Tuesday that included the naming of Glenn Tilton, ChevronTexaco vice chairman, as Dynegy's interim chairman. Tilton and two other ChevronTexaco executives had already been serving on Dynegy's board.
Dynegy Chairman and Chief Executive Chuck Watson resigned. The Houston energy company faces a Securities and Exchange Commission probe into its accounting and trading, and its stock price has dropped by about 64% since the start of the year.
Dynegy shares recently were trading up 8.3%, or 77 cents, at $10.07, while ChevronTexaco shares were off 1.1%, or 97 cents, at $88.13.
Updated May 28, 2002 2:22 p.m. EDT |
