Pennzoil, Chevron reach dealPennzoil Corp. said yesterday...


October 01, 1992

Pennzoil, Chevron reach deal

Pennzoil Corp. said yesterday that it agreed to swap nearly $1.1 billion, or 48 percent, of its Chevron Corp. stock for Chevron domestic properties that will double Pennzoil's current oil and gas business. Once the tax-free transaction closes, both companies will drop claims filed in a long-running legal battle over Pennzoil's acquisition of 9.7 percent of Chevron stock.

Under the agreement, Pennzoil will swap 15.75 million shares of Chevron common stock for all the stock of Chevron PCB Inc., which owns producing properties in the Gulf of Mexico, along the Gulf Coast and in the Permian Basin of Texas. Chevron said it expects the transaction to result in a fourth-quarter profit of about $375 million.

ITT to invest in subsidiary

ITT Corp. said yesterday that it will invest $680 million in its Hartford Insurance Group subsidiary as part of a reorganization prompted by losses in two lines of business. The reorganization will cause ITT to record a third-quarter charge against earnings of $582 million, the company said.

The investment in ITT Hartford includes $300 million cash and $380 million worth of stock in Alcatel Alsthom, a French conglomerate.

Executives' expectations lower

Business executives have lower expectations for sales and profits in the final three months of 1992 than they did in the current quarter, a survey released yesterday found. Dun & Bradstreet Corp. said the 3,000 executives questioned in its quarterly poll expressed concerns about the upcoming presidential election and lingering worldwide economic weakness.

Biotech lab gets AIDS contract

Biotech Research Laboratories of Rockville received a four-year $451,000 contract from the University of North Carolina to screen plants that might supply useful drugs to fight AIDS. The company, which was recently acquired by Boston Biomedical Inc., will study the analysis of the compounds for toxicity as well as its potency against the virus.

Boeing mulls plane sale to Iran

Boeing Co. said yesterday that it has discussed with Iran the potential sale of airplanes worth as much as $1 billion, but the State Department indicated that U.S. regulations will not be changed to permit the deal. A Boeing spokesman said the sale would be possible only if the United States reverses its current policy banning the export of civil aircraft to Iran.

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