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N0KFQ > TODAY 16.02.08 00:31l 25 Lines 1175 Bytes #999 (0) @ WW
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Subj: Today in History - Feb 12
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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.
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