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Holmes a Court Cleared to Hike Stake in Texaco

August 20, 1987|From Reuters

WASHINGTON — Australian investor Robert Holmes a Court said Wednesday that he had received clearance from federal antitrust regulators to increase his stake in Texaco to as much as 15% from 9.6%.

In a filing with the Securities and Exchange Commission, the Holmes a Court-controlled Bell Resources Ltd. said a required 30-day waiting period, which began July 14, had expired Aug. 13.

Holmes a Court has been rumored as a possible bidder for Texaco, although he repeated in the SEC filing that his purchases were for investment purposes.

Holmes a Court also said he had met Texaco Chairman James W. Kinnear on July 16 and 17 for sessions which were "largely social."

Texaco shares jumped $1 to $43.375 in active New York Stock Exchange trading after the announcement.

Meanwhile, Texaco received bankruptcy court approval Wednesday for a proposal that analysts said will bolster its takeover defenses.

The U.S. Bankruptcy Court lifted limitations on some of Texaco's debt securities so that the debt can once again be converted to common stock.

Texaco has operated with the supervision of the court since April, when it filed for protection from creditors as a result of its $10.5-billion legal fight with rival Pennzoil. The court suspended the conversion rights of the present debt instruments at the time of the bankruptcy filing.

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