ChevronTexaco is considering a hostile takeover bid of either Phillips Petroleum or Conoco Inc. to disrupt a proposed $17.1 billion merger.

According to published reports, the company's board of directors this week discussed the possibility, but took no action.
Phillips and Conoco agreed in November to a $17.1 billion merger, which shareholders are expected to vote on in March.
Also this week, ChevronTexaco released its first quarterly earnings statement since Chevron and Texaco merged. The company reported a preliminary net loss of $2.52 billion for fourth quarter 2001, compared with fourth quarter 2000 net income of $2.04 billion. Excluding net charges for special and merger-related items, fourth quarter 2001 operating earnings were $498 million, compared with $2.29 billion in the 2000 quarter.
Company officials, however, report that the merger is going well, and the company plans to save $1.8 billion from "operating synergies."
ChevronTexaco is the world's No. 4 energy company, but it is still much smaller than ExxonMobil, BP and Royal Dutch/Shell. An acquisition of Phillips or Conoco would increase ChevronTexaco's oil and gas reserves and help it to cut costs, according to the Wall Street Journal.