Texaco Inc told securities analysts ata meeting today that any settlement offers to Pennzoil Co &lt;PZL>
would now be far less than what it offered before, according to
analysts who attended the meeting.
    "The message was they were far less likely to settle
following the bankruptcy filing," said Richard Pzena of Sanford
C. Bernstein and Co, who attended the meeting.
    Texaco yesterday filed Chapter 11 bankrupcty to protect
itself from the 10.3 billion dlr judgement awarded to Pennzoil
for Texaco's illegal takeover of Getty Oil Co.
    Texaco spokesmen said they could not comment on the
analysts meeting.
    The company's bankruptcy filing freed Texaco from posting a
bond for the judgment pending appeal of the case in Texas
Courts. Pennzoil said it would oppose the Chapter 11 filing.
    "They are ready and willing to talk settlement," said one
analyst who attended the Texaco meeting but declined to be
named. "But a settlement would be for less now," he added.
    The analysts, a number of whom said they were recommending
Texaco, said the stock was so cheap that it might open up the
company up to a takeover bid. Texaco declined 3-1/8 to close at
28-1/2 today.
    Pzena said company officials were asked at the meeting if
it would agree to a takeover, but offered "no comment" in
reply. He said the company said that takeover talks were not
being held.
    "It would make a lot of sense for Royal Dutch/Shell &lt;RD> or
Exxon Corp &lt;XON> to go out and do it," Pzena said. "But they
wouldn't make a hostile offer."
    "This thing has opened them up to a possible acquisition,"
said Alan Edgar of Prudential Bache Capital Funding in Dallas.
"There's a lot of volume (in their stock) and that tells me
someone's messing around," he added.
    Texaco was the most actively traded issue on the New York
Stock Exchange with just under 13 mln shares changing hands.
    "I wouldn't rule anything out right now," said John Olson,
an analyst with Drexel Burnham Lambert Inc.
    Pennzoil's stock, also on the NYSE's most active list, fell
15-1/4 points to close at 77. Many analysts said the bankruptcy
filing was unfavorable to Pennzoil.
 Reuter
