Chevron Corp., San Ramon, Calif., is searching for a master trustee to handle the planned combination of its $4 billion U.S. defined benefit plan with the $1.6 billion U.S. plan of Texaco Inc., White Plains, N.Y., pending approval of the merger of the two corporations.
Chevron also is searching for third-party securities lending firms. Based on the bids it receives, Chevron will decide whether to include securities lending with the new master trustee’s duties or award it separately to a third-party firm.
Incumbent master trustees Deutsche Bank, for Chevron, and J.P. Morgan Chase Bank, for Texaco, will be eligible for the search.
The search could be open until June with a selection by July, but action could be taken sooner if the merger is approved earlier. David P. Smay, manager-investment analysis and actuarial at Chevron, said the intention is to combine the two plans under a single master trust soon after the merger becomes effective, creating Chevron Texaco Corp., based in San Francisco. Both plans will remain separate until they are combined, which is planned for 2002. How the plans will be staffed, including the leading executives, hadn’t been decided.
The searches are being handled in-house.
