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Chevron to buy Texaco?
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May 9, 1999: 9:33 p.m. ET
Newspaper says companies are talking about $42 billion purchase
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NEW YORK (CNNfn) - Chevron Corp. is in talks to buy Texaco Inc. in a deal worth $42 billion, according to the Wall Street Journal's interactive edition.
Texaco shares soared on Friday amid rumors that the oil company was a takeover target of Chevron, its long-time Asian partner.
On Friday, Texaco, based in White Plains, N.Y., told the Reuters news agency that the talk was "speculation and rumor."
But the Journal said in its article, posted on the Internet Sunday night, that the companies were talking about a stock deal valued at approximately $80 a share. The newspaper attributed the story to "people familiar with the situation."
The newspaper said that the two oil giants "aren't near an agreement" and noted that any such merger would have to clear some considerable regulatory hurdles.
Neither San Francisco-based Chevron nor Texaco would comment to the newspaper.
Shares in Texaco (TX) rose 5-1/16 to close at 67-1/4, on volume of 3.9 million shares, Friday. Chevron (CHV) shares slipped 2-15/16 to close at 94-7/8, on turnover of 1.9 million shares.
The two companies have done business together before. Texaco and Chevron have jointly owned Caltex Corp. since it was formed 63 years ago by their predecessor companies - Texas Co. and Standard Oil Co. of California, respectively.
The 50/50 venture, which generated 1998 revenues of $16.3 billion, operates 13 petroleum refineries and sells gasoline and convenience products through 8,500 service stations in the Asia-Pacific region, Africa, and the Middle East. 
-- from staff and wire reports
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