Texaco, Chevron cancel talks

Thursday, June 3, 1999 | 11:50 a.m.

NEW YORK -- Merger talks between energy companies Chevron Corp. and Texaco Inc. were halted Wednesday amid disagreements over price and the complexity of the deal.

In a statement Wednesday after the markets had closed, Texaco said that Chevron's proposal to buy Texaco was "unacceptable for several reasons, including complexity, feasibility, risk and price."

Chevron confirmed separately in a short statement that negotiations between the two had been called off. Both companies declined to comment further.

The deal would have resulted in the world's fourth-largest energy company with nearly $60 billion in revenue.

A Chevron-Texaco deal was seen by analysts as an important step for both companies to compete effectively in the rapidly consolidating energy market.

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