Texaco’s board approved a $500-million preferred stock...

Texaco’s board approved a $500-million preferred stock issue to be owned by its employees, a move designed to thwart any takeover. The move came as Carl C. Icahn, Texaco’s biggest stockholder, was rumored to be considering a second run at the company. Texaco said the new stock issue will ultimately raise the employees’ stake in the company to 8.5% from 5%. Chief Executive James W. Kinnear said the move was intended to “further align (employees’) interests with those of our shareholders.” Separately, Texaco shares fell when the company failed to increase its dividend as some analysts expected.