SEC SEEKS COURT REVIEW OF TEXACO <TX> CASE
Texaco Inc said the U.S.
Securities and Exchange Commission will urge the Texas Supreme
Court to accept the Texaco, Pennzoil Co <PZL> case for review
with respect to Commission Rule 10b-13 as it applies to the
facts of the case.
    Texaco said it is pleased and encouraged by the SEC's
decision, pointing out "Pennzoil's own counsel told the trial
court that 'If Rule 10B-13 was an impediment, then in fact our
contract was void' and further that, if the alleged contract
was void, "we have no case.'"
    In a letter dated June 26, the SEC's general counsel told
attorneys representing Texaco and Pennzoil the commission will
urge the Texas Supreme Court to review the issue of federal
securities law in the Texaco-Pennzoil case, Texaco said.
    "This is to inform you that the commission has determined
to file a brief amicus curiae in the (Texaco-Pennzoil)
litigation. The brief will focus on Commission Rule 10b-13 as
it applies to the facts of this case, and will urge the Texas
Supreme Court to accept the case for review with respect to
that issue," the letter said.
    The SEC's general counsel said, "we currently anticipate
that the brief will be filed around the week of July 20."
    An issue concerning SEC Rule 10b-13 is part of Texaco's
application for a Writ of Error, which was filed with the Texas
Supreme Court on June 15, the company said.
    "The SEC rule prohibits private agreements or arrangements
to purchase a target company's stock while a tender offer by a
prospective purchaser is pending," the company's statement said.
   
    In its application to the Texas Supreme Court, Texaco said,
it points out that "on the day that Pennzoil made its alleged
agreement to purchase Getty Oil stock (Jan. 3, 1984), it
(Pennzoil) had outstanding a public tender offer for Getty Oil
stock."
 Reuter
