Updated from 5:53 p.m. Sunday

Chevron ( CHV) and Texaco ( TX) earlier today officially unveiled Chevron's buyout of Texaco.

Chevron said it will pay 0.77 of its share for each Texaco share, or about $64.87 per share. In trading Friday, Texaco was off $1.88, or 3.3%, to $55.13. Chevron fell $3.06, or 3.5%, to $84.25.

On Friday, The Financial Times had said the two big oil companies were talking again. They talked last year, but never reached a merger agreement. In June 1999, Texaco called off the talks because its board saw "no compelling basis" to continue discussions as it found Chevron's proposal "unacceptable in all respects." Chevron said it was surprised Texaco rejected its "very competitive offer." The offer was said to be $70 a share.

The company will be called ChevronTexaco. A press release about the deal said the companies expect to realize $1.2 billion in annual savings within six to nine months after the merger is completed.

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