Tesoro, Valero rework California refinery deal

SAN ANTONIO >> Tesoro Petroleum Corp., which owns Hawaii's largest refinery, has renegotiated the price it will pay Valero Energy Corp. for a refinery and 70 service stations in California, and the deal will close this month, the companies said today.

The San Antonio-based oil companies said they agreed to trim Tesoro's purchase price by $50 million, to $1.075 billion, and defer payment of $150 million.

The amended agreement has been approved by the California attorney general and is subject to review by the Federal Trade Commission.

Peregrine's top execs quit amid accounting probe

SAN DIEGO >> The chairman and the chief financial officer of Peregrine Systems Inc. resigned after the software company's new auditor questioned as much as $100 million in transactions, it was announced today. The company's stock plunged 65 percent today to $1.68, reducing its market value to less than $200 million from $2.38 billion at the start of 2002. Peregrine said the potential problems were discovered by independent auditor KPMG, which was hired in April to replace Arthur Andersen LLP, which Peregrine earlier fired after Andersen was marred by the Enron scandal.

Steve Gardner resigned as board chairman and chief executive and Matt Gless quit as chief financial officer and executive vice president of finance.

Jury selection to start in accounting firm's trial

HOUSTON >> Arthur Andersen LLP's federal trial for obstruction could be the knock- out punch in the company's fight to survive client losses, fleeing partners and severe damage to its reputation.

Unless attorneys reach a last-minute deal, jury selection will begin today in the first criminal trial to emerge from Enron Corp.'s collapse last year.

Andersen is charged with obstruction of justice. Members of the accounting firm allegedly shredded documents and deleted computer records related to Enron audits as the Securities and Exchange Com- mission began examining Enron's web of accounting.

The firm publicly acknowledged the shredding in January, shortly after reporting it to the Department of Justice.

Iraq to resume oil export after embargo effort fails

BAGHDAD, Iraq >> After failing to win support for an oil embargo against the United States and other allies of Israel, the Iraqi Cabinet voted yesterday to resume oil exports beginning midnight tomorrow, national television reported.

In a statement broadcast on the state-run service, the Cabinet said its April 8 decision to suspend oil exports for 30 days "did not find a response from Arab oil-producing brothers to take similar measures so that it would succeed."

Japanese markets closed

TOKYO >> Tokyo markets were closed today for a holiday and will reopen tomorrow.