alert - possible takeover by santos, page-4

1247 [Dow Jones] Santos (STO) denies newspaper report it is negotiating to buy PNG assets of ChevronTexaco, says "hasn't made an offer, not made a bid and not negotiated with ChevronTexaco." ChevronTexaco spokesman not commenting on report it is looking to sell assets, but industry source tells Dow Jones that ChevronTexaco has been in recent talks with one interested buyer, not Santos. Speculation is that if that buyer walks then ChevronTexaco may formally start tender process, in which case Santos would likely be approached given previous interest in PNG's Orogen. Santos down 4 cents, or 0.7%, at A$5.40. (AND)