FORGED EXXON <XON> ZERO-COUPON EURONOTES FOUND
Exxon Corp said that forgeries of a
20-year zero-coupon Euronote issued by its Exxon Capital Corp
subsidiary have been discovered in the European market.
    The issue involved was launched in 1984 and matures on
November 15, 2004. About 1,900 notes with a total face value of
19 mln dlrs and a market value of about four mln dlrs have been
identified so far, the company said.
    Exxon said that Morgan Guaranty Trust Co, the fiscal and
paying agent for the issue, Euro-clear and Cedel (the two major
European securities clearing systems), and police in London and
Brussels are investigating the case.
    Indications of forgeries came to light on Wednesday at
Morgan Guaranty Trust Co in London, which acts as Euro-clear's
depositary, and Exxon said they were confirmed today.
    Euro-clear told Exxon that it has examined to its
satisfaction all the notes at the depositary and is checking
the authenticity of new deposits of the notes as they enter the
Euro-clear System.
    Cedel is also reviewing all notes within its system, Exxon
added. At Exxon's direction, Morgan Guaranty Trust Co stands
ready to validate any notes in order to establish their
authenticity, Exxon said.
    A spokeswoman for Exxon was unable to say whether
secondary-market trading in the notes had been affected or who
would have legal responsibility for reimbursing defrauded
investors.
    Zero-coupon forgeries have turned up in the Euromarket
before. Because there are no interest coupons attached to the
bond certificates, they are easier to forge than coupon issues,
market sources said.
 Reuter
