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PUROLATOR OFFERING "ANOTHER STEP," SAYS PENNZOIL'S PATE

 PUROLATOR OFFERING "ANOTHER STEP," SAYS PENNZOIL'S PATE
 HOUSTON, Oct. 27 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL) announced that it will sell its 100 percent stake in its filtration products subsidiary, Purolator Products Co., as part of the proposed underwritten public offering described in a registration statement filed by Purolator with the Securities and Exchange Commission today.
 The public offering covers 10 million shares of Purolator common stock, of which 1.5 million shares will be offered for Purolator's account and 8.5 million shares (representing all of Pennzoil's holdings) will be offered for Pennzoil's account. Consequently, following the consummation of the offering, Pennzoil will not own any portion of Purolator.
 Pennzoil expects to realize approximately $210 million in proceeds from the sale of Purolator common stock and from the related repayment of indebtedness owed Pennzoil by Purolator. Pennzoil will use the proceeds from the transaction to reduce debt.
 Pennzoil President and Chief Executive Officer, James L. Pate, said, "Today's announcement represents another step in our efforts to focus the company on those areas that we consider strategic to future business operations. Later this week, Pennzoil will consummate the acquisition of over $1 billion in domestic oil and gas operations from Chevron Corp. The net effect of the Purolator offering and the Chevron transaction for Pennzoil, we believe, is a stronger cash flow, reduced debt, and a sharper strategic focus, allowing us to compete more effectively."
 -0- 10/27/92
 /CONTACT: Robert Harper of Pennzoil Co., 713-546-8536/
 (PZL) CO: Pennzoil Co.; Purolator Products Co. ST: Texas IN: OIL SU:


AH -- NY124 -- 5637 10/27/92 16:48 EST
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Publication:PR Newswire
Date:Oct 27, 1992
Words:266
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