Business Notes LITIGATION

The biggest corporate brawl in history could be nearing an end. Thanks in part to the negotiating skills of TWA Chairman Carl Icahn, a settlement may be at hand in the epic legal battle between Texaco and Pennzoil. Since 1985 Texaco has been appealing a court order to pay Pennzoil $10.5 billion in damages as a result of a merger dispute. In April, Texaco filed for bankruptcy protection. Enter Icahn, who three weeks ago became Texaco's largest stockholder by boosting TWA's holdings to 12.3%. Icahn helped forge a deal between Pennzoil and a committee representing Texaco's shareholders to settle the conflict for $3 billion. Texaco's management blasted the plan, but may have to go along if its shareholders approve. Icahn stands to reap rich profits, since Texaco's stock could surge once the firm emerges from bankruptcy.