Chevron, Texaco Set Shareholder Meetings For October 9

Chevron Corp. and proposed merger partner Texaco Inc. Friday scheduled special shareholder meetings for October 9, with a record date of August 20, to vote on their previously announced merger (see NGI, Oct. 23, 2000). The date of the meetings, as well as other merger-related information -- including a new New York Stock Exchange ticker symbol, CVX -- were contained in a filing by Chevron made Friday with the U.S. Securities and Exchange Commission. The new company would be called ChevronTexaco.

With an affirmative vote by shareholders of both companies, the San Francisco-based Chevron and White Plains, NY-based Texaco would become the second largest U.S.-based oil and gas company, and the world's fifth largest. The companies plan to complete their merger on the same day as the shareholder meetings, assuming they receive approval.

On Thursday, Chevron Corp. issued a plan to antitrust regulators last week detailing its plans to sell Texaco's U.S. refining business and other assets once a merger is completed, but less than an hour later, the oil giant retracted the statement, blaming the information on a clerical error.

In filing its second quarter Form 10-Q on Thursday with the U. S. Securities and Exchange Commission, Chevron said it "erroneously reported" information about executing a consent agreement to sell the Texaco businesses with the U.S. Federal Trade Commission (FTC).

"Negotiations continue with staff of the Federal Trade Commission," Chevron said in a statement, and it added it "remains optimistic that it will complete the merger within the one-year time frame discussed last October when the merger plan was announced...Chevron regrets any confusion caused by the earlier incorrect statement."

In the first filing, Chevron indicated that if anti-trust regulators approved the merger, it would agree to sell Texaco's interest in two refining and joint marketing companies, Motiva Enterprises and Equilon Enterprises. It also said it would agree to sell Texaco's U.S. natural gas processing and transportation facilities and jet fuel marketing businesses.

Motiva, which Texaco holds a 35% interest in, has four refineries along the East and Gulf Coast regions of the country, and supplies petroleum products to about 13,000 Shell and Texaco retail and wholesale outlets. Royal Dutch/Shell Group owns 30% of Motiva, and Saudi Aramco holds another 35%. Equilon, which Texaco holds 44% interest in, has four West Coast refineries and supplies fuel to 9,000 Shell and Texaco outlets. Shell owns 56% of Equilon.

FTC approval is expected to be given in the next two to three weeks, which would allow the deal to be completed within the one-year time frame.

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