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UNOCAL AND MESA SETTLE LITIGATION

 LOS ANGELES, Jan. 12 /PRNewswire/ -- Unocal Corp. and MESA Inc. today jointly announced that they have agreed to settle a lawsuit against MESA brought by Unocal and a Unocal stockholder.
 Both Unocal and MESA said that they believe the settlement is in the best interests of their respective stockholders in light of the uncertainties of litigation and other relevant circumstances.
 Under the terms of the settlement, Unocal will receive $47.5 million in cash from MESA and other parties named in the lawsuit. MESA's share of the payment will be $42.8 million. For the purpose of settling the claim, MESA intends to issue and sell an additional amount of its 12 3/4 Percent Secured Discount Notes due in 1998 as permitted by the indenture governing the presently outstanding notes.
 After accounting for all fees and expenses related to the litigation, Unocal expects to realize approximately $33 million before tax from the settlement. MESA will reflect the loss from the settlement in the fourth quarter of 1993.
 The lawsuit alleged that the defendants had purchased and sold Unocal common shares within a six-month period in 1985 in transactions subject to Section 16(b) of the Securities Exchange Act of 1934, resulting in alleged short-swing profits of approximately $99 million that were recoverable by Unocal under Section 16(b). The plaintiffs also asked the court, in its discretion, to grant pre-judgment interest, which amount could currently exceed $50 million. MESA contended that none of the share transactions were subject to Section 16(b) and, further, that no profit was realized. The lawsuit was filed in 1986.
 The settlement must be approved by the United States District Court for the Central District of California following notification by Unocal to its security holders. It is expected that the settlement will be effective in the first quarter of 1994.
 -0- 1/12/94
 /CONTACT: Barry Lane, Unocal, 213-977-7601; or Jay Rosser, MESA, 214-969-2219/


CO: Unocal Corp.; MESA Inc. ST: California IN: OIL SU:

JM-LS -- LA017 -- 1297 01/12/94 09:15 EST
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Publication:PR Newswire
Date:Jan 12, 1994
Words:339
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