Several pension funds that own Texaco stock are lining up to support the oil giant's proposal for an amended poison pill that is scheduled for a vote at tomorrow's annual meeting.
Among the supporters are the California Public Employees' Retirement System, Sacramento, which owns 3 million shares; the California State Teachers' Retirement System, Sacramento, which owns 500,0000 shares; and 85 Taft-Hartley funds, which together own 1.2 million shares.
The poison pill is more shareholder friendly than most, expiring in five years instead of 10 and dissolving if the company received an all-cash tender offer. The anti-takeover device would kick in when an acquirer bought 20% of the stock instead of the typical 10% to 15% amount for most pills.
But Institutional Shareholder Services and Proxy Monitor oppose the plan because of the all-cash requirement. ``Texaco's market cap is $34 billion, and it would be impossible for anyone in the industry to come up with that amount,'' said ISS analyst Eric Williams.