"ChevronTexaco supports the action of Dynegy's Board of Directors to ask Glenn Tilton to assume a role as interim chairman of the board and Dan Dienstbier as interim chief executive officer while that company undertakes a comprehensive search for a permanent chairman and chief executive officer. Given his extensive industry experience and proven leadership skills, we believe Glenn Tilton is well suited for this interim role. As a major stockholder with strong commercial relationships with Dynegy, ChevronTexaco has a vested interest in supporting a strategy that will restore investor confidence in the company, to the benefit of all Dynegy shareholders. We support the efforts of the entire Dynegy management team, including president and chief operating officer Steve Bergstrom, to continue to take the necessary steps to address the challenges facing the company."
ChevronTexaco holds approximately 26.5 percent equity interest in Dynegy. In addition, Dynegy purchases ChevronTexaco's North American natural gas, and ChevronTexaco purchases natural gas liquids from Dynegy. In November 2001, ChevronTexaco invested $1.5 billion in mandatory redeemable Dynegy preferred shares to fund Dynegy's equity infusion into Enron. The preferred shares are convertible into Dynegy common stock at ChevronTexaco's option, in which event ChevronTexaco would own an approximate 36 percent equity interest in Dynegy. If ChevronTexaco does not convert the preferred shares by November 2003, Dynegy must redeem them at that time for $1.5 billion in cash.
SOURCE ChevronTexaco Corp.