| |
N0KFQ > TODAY 15.02.08 23:31l 25 Lines 1175 Bytes #999 (0) @ WW
BID : 13351_N0KFQ
Read: GUEST
Subj: Today in History - Feb 12
Path: IZ3LSV<IW2OHX<IK2QCA<I4UKI<IR2UBX<IK2XDE<ON4HU<F4BWT<YO6PLB<CX2SA<
N9PMO<N0KFQ
Sent: 080211/1603Z @:N0KFQ.#SWMO.MO.USA.NA #:13351 [Branson] FBB7.00i $:13351_N
From: N0KFQ@N0KFQ.#SWMO.MO.USA.NA
To : TODAY@ALLUS
February 12, 1987
The case against Texaco
During the mid-1980s, two of the nation's oil giants, Texaco and
Penzoil, engaged in a nasty, protracted battle to acquire a plum
prize--Getty Oil. When Getty first went on the block, Penzoil
made a handsome $5.3 billion offer; Getty accepted the bid and
Penzoil's purchase was duly celebrated by both sides. However,
the deal was never sealed with a written contract, opening the
door for Texaco to make a bid that doubled Penzoil's offer.
Smelling pay dirt, Getty shunned its original suitor and brokered
a deal with Texaco, who wisely confirmed the acquisition with a
written contract. But, Penzoil battled back, suing Texaco for
proffering an illegal takeover bid. In 1985, a Texas court ruled
that, despite never signing a formal contract, Penzoil and Getty
had nonetheless consented to a binding deal, and Texaco was
slapped with a whopping $10.5 billion fine. Texaco responded with
a counter-suit, but the companyİs efforts ultimately proved
futile: on this day in 1987, a Texas court upheld the initial
decision in the case, preserving the hefty fine against Texaco.
Read previous mail | Read next mail
| |
