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Texaco Spurns Chevron's Offer, Ending Merger Plans

Texaco

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called off combination talks with

Chevron

(CHV)

because its board saw "no compelling basis" to continue discussions as it found Chevron's proposal -- which

Reuters

said was valued at $70 a share -- "unacceptable in all respects." Chevron said it was surprised Texaco rejected its "very competitive offer."

Alfred Broaddus, president of the

Richmond Federal Reserve

, said there is a risk that the U.S. economy will overheat and that he saw no signs of an economic slowdown from rapid growth. "The present expansion seems to be gathering additional steam. And there are no definite signs of a deceleration currently," Broaddus told the

Washington Association of Money Mangers

. "So the risk of overheating is out there."

Office Depot

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will replace

American Stores

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in the

S&P 500

on a date to be announced. American Stores is being acquired by

Albertson's

(ABS)

. Meanwhile,

Harte-Hanks

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will take Office Depot's spot in the

S&P MidCap 400 Index

.

At a New York analysts meeting today,

Hewlett-Packard

(HWP)

said it expected double-digit revenue growth in the second half of 1999 and a slight dip in the company's operating profit margin.

In other postclose news (earnings estimates from

First Call

; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

ABC-NACO

(ABCR)

reported third-quarter earnings of 13 cents a share, 3 cents above the five-analyst forecast but below the year-ago 30 cents.

Burlington Coat Factory

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said its fourth-quarter comparable-store sales rose 7.6%. Separately,

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American Eagle Outfitters

(AEOS)

said its May same-store sales hopped up 18.7%.

CSK Auto

(CAO)

posted first-quarter earnings of 34 cents a share, beating the six-analyst estimate of 30 cents and moving ahead of the year-ago 12 cents.

Culp

(CFI)

announced fourth-quarter earnings of 23 cents a share, 3 cents higher than the four-analyst view but below the year-ago 31 cents.

RCM Technologies

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posted second-quarter earnings of 35 cents a share, topping both the five-analyst estimate for 33 cents and the year-ago 27 cents.

U.S. Xpress Enterprises

(XPRSA)

said it will record a second-quarter charge of $1.3 million related to a settlement of a dispute with

Employee Solutions

(ESOL)

.

Mergers, acquisitions and joint ventures

Harris

(HRS)

announced plans to sell its semiconductor business for $700 million to a

CitiGroup

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venture capital business called

Sterling Holding

.

Motorola

(MOT)

said it will make a $10 million equity investment in

Proxim

(PROX)

.

Peoples Heritage Financial

(PHBK)

said it expects to record a $40 million charge in the fourth quarter related to its $781 million acquisition of

Banknorth

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, announced earlier today.

Miscellany

DSP Communications

(DSP)

said Chairman Davidi Gilo was also named chief executive, replacing Joseph Perl.

In a victory for the tobacco industry, a Mississippi jury ruled that the estate of a barbershop owner who died of cancer was not entitled to damages in a second-hand smoke suit.