Texaco Maneuvers in Court To Thwart Icahn Takeover
Texaco Inc. said today it has asked a federal court to freeze financier Carl C. Icahn's ability to use his stock in moves against the oil giant, accusing the takeover specialist of "major violations of securities laws."</br></br>The suit, filed in U.S. District Court in White Plains, N.Y., charges that Icahn and other associates and companies he controls have manipulated the stock market at the expense of other stockholders through "a pattern of deception." The suit asks the court for a ruling that blocks Icahn from soliciting proxies, acquiring additional Texaco stock or voting the shares he already holds, which amount to 14.8 percent of Texaco's 242.8 million outstanding shares.</br></br>In addition, it asks the court to void Icahn's Feb. 10 filing with Texaco nominating candidates for five board seats that would be voted on at the company's June 7 annual meeting in Tulsa.</br></br>In a one-sentence statement issued at his New York office, Icahn said, "We believe the lawsuit is without merit, and will vigorously defend our right to communicate with other Texaco shareholders."</br></br>Icahn has been an outspoken critic of the company's management since he began buying Texaco shares last fall. In February he offered to withdraw his slate of directors if the company put itself up for sale at $55 a share or more. Texaco officials refused to do that.