Some Key Days in the Texaco-Pennzoil Battle With PM-Texaco-Pennzoil Bjt
Undated (AP) _ Here are the important dates in the battle between Texaco Inc. and Pennzoil Co. for control of Getty Oil Co.:
Dec. 28, 1983 - Pennzoil Co. launches a bid of $100 a share for about 20 percent of the stock of Getty, a company viewed as vulnerable because of feuding among principal shareholders.
Jan. 1, 1984 - Pennzoil Chairman J. Hugh Liedtke and Gordon P. Getty, sole trustee for the holders of about 40 percent of Getty stock, discuss a plan in which Pennzoil would acquire three-sevenths of Getty Oil.
Early 1984 - Representatives of Getty Oil contact Texaco and other large oil companies to invite competing bids.
Jan. 3, 1984 - Getty’s board, faced with a threat of removal by Gordon Getty, approves merger negotiations with Pennzoil at a minimum price of $112 a share.
Jan. 4, 1984 - Getty Oil and Pennzoil issue identical press releases announcing an agreement in principle ″subject to a definitive merger agreement.″ Getty Oil’s investment bankers advise Texaco that anyone is still free to bid.
Jan. 6, 1984 - Texaco reaches agreement to acquire Getty for $125 a share. The bid later is raised to $128.
Feb. 8, 1984 - Pennzoil sues Texaco in Houston, alleging Texaco wrongfully interfered in its merger agreement with Getty. It asks for $7.53 billion in actual damages and $7.53 billion in punitive damages.
July 9, 1985 - Trial begins in Houston, with Judge Anthony Farris presiding.
Oct. 22, 1985 - Farris steps down because of illness. Judge Solomon Casseb Jr. is assigned to the case.
Nov. 19, 1985 - Jury returns a verdict in favor of Pennzoil and awards it $7.53 billion in compensatory damages and $3 billion in punitive damages.
Dec. 10, 1985 - Casseb enters the judgment for the full amount of the verdict, plus $600 million in interest, for a total of $11.1 billion. Under Texas law, Texaco faces putting up a bond equal to the judgment while it appeals the case.
Dec. 17, 1985 - Texaco obtains a temporary order from U.S. District Judge Charles Brieant in White Plains, N.Y., barring Pennzoil from taking any action to enforce the Texas court order, such as seizing Texaco assets during the appeal of the judgment.
Dec. 20, 1985 - Brieant suspends proceedings while the two companies try to negotiate a settlement.
Jan. 7, 1986 - Pennzoil stock shoots up 30 percent on rumors it is near a settlement with Texaco, but Pennzoil announces at the end of the day that its board of directors has rejected a merger offer from Texaco.
Jan. 8, 1986 - Pennzoil’s chairman, J. Hugh Liedtke, tells reporters there is no ″reasonable likelihood″ a settlement will be reached.
Jan. 9, 1986 - Brieant resumes proceedings in White Plains and hears arguments over Texaco’s request for an injunction against Pennzoil. In Houston, Texaco asks for a new trial and seeks the removal of Casseb from the case.
Jan. 10, 1986 - Brieant grants an injunction against Pennzoil and rules Texaco must put up only $1 billion for a bond while it appeals the case in the Texas courts. Pennzoil says it will appeal the ruling.
Feb. 20, 1986 - A federal appeals court in New York upholds Brieant’s ruling.
March 7, 1986 - Texaco posts the bond with the district clerk for Harris County, Texas, courts to initiate appeal, pledging $1 billion of stock in its Canadian subsidiary.
May 2, 1986 - Pennzoil asks the U.S. Supreme Court to review the appeals court decision. The Supreme Court agrees on June 23, saying it will decide by July 1987 whether the decision was correct.
July 31, 1986 - The Texas Court of Appeals hears oral arguments in Texaco’s appeal of the $11.1 billion judgement handed down by the Texas trial court.
Jan. 12, 1987 - The U.S. Supreme Court hears oral arguments on Pennzoil’s request to review the New York appellate court’s decision.
Feb. 12, 1987 - The Texas Court of Appeals upholds the $7.53 billion award in actual damages, but throws out two-thirds of the $3 billion in punitive damages originally awarded by the Houston jury.
April 6, 1987 - The U.S. Supreme Court rules unanimously that Brieant should not have gotten involved in the issue of Texaco’s bond before the Texas courts reviewed the matter; the justices do not address the question of whether a multibillion-dollar bond would unconstitutionally preclude Texaco from appealing the damage judgment by threatening it with financial ruin. Texaco says it will appeal the bond issue to the Texas courts immediately, but warns that an unfavorable ruling would force it to file for protection under Chapter 11 of federal bankruptcy laws.
April 7, 1987 - The Texas Court of Appeals puts the $11 billion bond requirement on hold pending a Monday morning hearing.
April 12, 1987 - Texaco announces that it has filed, in federal bankruptcy court in White Plains, under Chapter 11 of the federal bankruptcy law for protection from its creditors.