French Oil Firms Total Fina and Elf to Merge

French oil companies Total Fina and Elf Aquitaine agreed to merge in a $54-billion deal that would create the world’s fourth-largest private oil firm. Shareholders in Elf Aquitaine, which had resisted Total’s initial takeover bid, would receive 19 shares of Total Fina for every 13 shares of Elf. Total Fina launched the takeover battle in July when it made an unsolicited offer valued at $44 billion. Elf countered with a $51-billion cash-and-stock bid for Total Fina. The resolution, reached during the weekend, was a defeat for Elf Chairman Philippe Jaffre, 54, who is to retire after the merger is completed. Total Fina Chairman Thierry Desmarest, 53, would lead the combined company. Total Fina was created in December when Total acquired Belgian refiner Petrofina.