Texaco shares hit a low of $30 in 1986, and it filed for bankruptcy protection the next year.

He sold the Texaco shares for $108 million less than he had paid for them in May.

Texaco shares had closed on the Big Board at $38.50, down 75 cents.

He added, however, that Texaco shares would trade around $45 if it paid $3 billion to settle the case.

In trading yesterday, Texaco shares fell $1.50, to $32.25.

Some 230,000 stockholders hold 243 million Texaco shares.

Any plan must be approved by holders of two-thirds of the Texaco shares.

Individuals who own Texaco shares will owe taxes, at their full normal rate, on the value of the notes and on all the cash payments.

Texaco shares rose by 75 cents yesterday, closing at $104.375.

Texaco shares rose sharply after the announcement and closed at $48, up $3.25.