Pennzoil Rejects Revised Up Offer

Pennzoil Co. said its board rejected Union Pacific Resources Group’s revised hostile takeover bid, saying it is still inadequate.

Last week, Union Pacific Resources said it was offering $84 in cash for each Pennzoil share. Its original offer, made in July, offered stock and cash. Pennzoil said that the stock and cash offer could have resulted in some investors getting less than $84 a share.

Pennzoil Tuesday said the new offer was still below a realistic valuation of the company based on its strong recent earnings performance, the rise of its stock price and its oil refining and exploration prospects.

Pennzoil also called Union Pacific’s offer to share Pennzoil’s international assets a “true red-herring” that lacks substance and detail.