$3 billion offer in oil feud // Pennzoil, Texaco group agree on plan

HOUSTON Pennzoil and a committee representing stockholders inTexaco have agreed to settle the legal feud between the oil companiesfor $3 billion in cash, a Pennzoil spokesman said.

The proposal, which still must be approved by Texaco creditors,a federal judge and Texaco shareholders, will be filed next week withthe federal bankruptcy court in White Plains, N.Y.

Texaco and two financial subsidiaries filed for protection underChapter 11 of the bankruptcy code in April to avoid having to post asecurity bond equal to the $10.3 billion damage judgment against itby Pennzoil for improperly interfering in a merger between Pennzoiland Getty Oil Co.

Texaco's …