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To: stock4U who wrote (74142)	5/10/1999 9:08:00 AM
From: ilh1	Read Replies (1) \| Respond to of 119973

Texaco shares soar on Chevron talk Companies decline comment on merger speculation By David Callaway & Richard Cole, CBS MarketWatch Last Update: 9:44 PM ET May 9, 1999 Also: NewsWatch NEW YORK (CBS.MW) -- Texaco Inc. shares soared 8 percent on speculation the oil giant is in talks to merge with Chevron Corp. to create one of the world's largest energy companies. Both Texaco (TX: news, msgs) and Chevron (CHV: news, msgs) declined to comment on the speculation, which reportedly began in London. Texaco shares jumped 5 1/16 to 67 1/4 Friday, while Chevron's stock fell 2 15/16 to 94 7/8. Bloomberg News reported that the companies were in preliminary talks and that any deal could be months away, citing an unidentified person "familiar" with the discussions. On Sunday, The Wall Street Journal Interactive reported the deal could be worth about $42 billion, or $80 per share. The report cited "people familiar" with the talks, and said the $80 per share price discussed would represent about a 19 percent premium over Texaco's closing price Friday of $67.25. "Texaco doesn't comment on rumors and speculation," said Chris Gidez, a spokesman for New York-based Texaco. Dawn Soper, a spokeswoman for San Francisco-based Chevron, also declined to comment. The combination of the world's third- and fourth-largest oil companies would be only the latest in the rapidly consolidating oil industry. In December, Exxon (XON: news, msgs) and Mobil (MOB: news, msgs), the largest two oil companies, agreed to merge in a deal valued at more than $70 billion, while just last month BP Amoco (BPA: news, msgs), itself the result of a merger between British Petroleum and Amoco, agreed to buy Atlantic Richfield (ARC: news, msgs) for $34 billion in stock and debt. Oil companies were hit hard by low oil prices in 1998, although prices have surged this year to as high as $19 a barrel from about $12 in December. Crude-oil futures closed Friday at $18.22 a barrel.