TEXACO <TX> PENNZOIL <PZL> WIDE APART ON ACCORD
Texaco Inc and Pennzoil Co are still
far apart on a settlement of their 10.3 billion dlrs dispute,
but both sides are still willing to settle, executives from
both companies said.
    Pennzoil chairman J. Hugh Liedtke, on the MacNeil/Lehrer
News Hour, said Pennzoil had offered to settle the dispute
along the lines suggested by Wall Street analysts - something
in the range of three to five billion dlrs - but Texaco Inc
president James Kinnear said it was the first time he heard the
three to five billion dlrs figure.
    Kinnear, on the television news program, said Pennzoil had
talked about four to five billion dlrs previously.
    Both executives, who were taped in separate interviews,
each accused the other of irresponsible actions in the ongoing
legal battle, which involves Texaco's 1984 takeover of Getty
Oil Co.
    Yesterday, Texaco filed for protection under Chapter 11 of
the U.S. Bankruptcy code, stating it was unable to continue its
business because of the legal fight.
    Liedtke said Pennzoil is prepared to litigate the matter as
long as it takes to bring the case to a final conclusion.
    Lietke said he thought it would take about 18 months to two
years to conclude the case.
    Asked if chance of a settlement were out the window,
Liedtke replied, "I've never thought that was the case. I
always believed this could be settled. But it will never be
settled as long as Texaco has the position that it has that
either you will settle with us on our basis or we will hold our
breath till we die." 
    But Kinnear said, "we offered a big reasonable settlement."
    Kinnear also seemed to confirm remarks made at an analysts
meeting earlier today where Texaco said it would only settle
the matter for far less than what it offered before.
    "The offers we made yesterday won't be repeated tomorrow,"
Kinnear said.
    Kinnear charged that Pennzoil was "using extortionary
pressure to deny us the ability to conduct our business." He
said that pressure forced the company into its Chapter 11
filing. 
    But he added he still hoped the dispute would be settled.
 Reuter
