Investors hoping that Texaco Inc. would have good news for them after its board meeting Friday were disappointed that no announcement was forthcoming.
Securities analysts said Thursday that the company, which is completing a major restructuring program, might say that it was ready to make a previously announced $1.7 billion stock distribution or lift its quarterly dividend.But Texaco held off any announcement on the distribution and kept its quarterly dividend unchanged at 75 cents a share.
"It's a bit of a disappointment," said one analyst who had been anticipating an announcement on the $1.7 billion payout.
Asked when the distribution would be announced, a Texaco spokesman repeated a previous statement that it would be made "just as soon as practical."
Texaco shares on the New York Stock Exchange closed unchanged at $54.50 in a broadly higher market.
Last week Texaco said it would sell its majority stake in its Canadian subsidiary for $3.24 billion in cash to Canada's largest oil company, Imperial Oil Ltd., a subsidiary of Exxon Corp. The sale was one of the last steps in Texaco's restructuring since it emerged from bankruptcy after losing a multibillion-dollar legal fight with Pennzoil Co. over Texaco's acquisition of Getty Oil Co.
The restructuring included a $6 billion asset sale program. Analysts speculated that the Canadian sale might pave the way for the distribution details to be announced.