Shares of BP Amoco and Atlantic Richfield Co. (ARCO) rose lastFriday following press reports that the companies agreed to selloff all of ARCO’s Alaskan assets to avoid going to court with theFederal Trade Commission (FTC) over their proposed merger.

BP Amoco closed up 75 cents Friday at $44.38, and ARCO leapt$3.69 to $68 a share. Neither company would comment on the rumor ornegotiations with the FTC. An FTC spokesman declined to comment,and a spokesman from Alaska Governor Tony Knowles’ office said hecould not confirm reports of the asset sale agreement.

“The State of Alaska has been closely involved in this mattersince the proposed merger was first announced last April. Wecontinue to as we always have to seek a negotiated settlement,rather than leave the matter up to litigation,” said Knowlesspokesman Bob King.

Last week Knowles sent Alaska Attorney General Bruce Botelho toSan Francisco to meet with parties involved in the case. Heobtained a court ruling allowing Alaska to intervene in the case infavor of the merger. The FTC had opposed the state’s intervention.Alaska now has the right to call witnesses and present evidence inthe case. Washington, Oregon and California remain opposed to themerger for fear that it would increase gasoline prices.

Earlier this month the FTC voted to block the deal and said themerger could lead to higher prices for Alaskan oil. The FTC isseeking a preliminary injunction to block the deal. The case goesto federal court in San Francisco March 20.

Joe Fisher, Houston

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