But before any sale could be closed, Crown would need to resolve its three-year lockout of union workers at its Pasadena refinery, said an official with the union representing the workers.

Baltimore-based Crown, which also owns an oil refinery in Tyler, said it had hired Credit Suisse First Boston to advise it on its options, including the sale of all or part of the company.

Crown Central is one of the smaller refiners in the nation, with a market capitalization of only about $80 million. Its stock is thinly traded and majority-owned by Henry Rosenberg Jr., Crown's chairman, and his family members.

The decision to seek out buyers came in conjunction with the company's announcement of a loss of $29.4 million for 1998 -- its seventh loss in eight years. It earned a profit of $19.2 million in 1997.

The company blamed the loss largely on low prices for products, particularly gasoline.

A company spokesman said the dispute with the union in no way influenced the decision to explore options to increase the company's stock price.

"We think this is the prudent thing to do and a prudent strategy," said Joe Coale, director of corporate communications for Crown at its Baltimore headquarters. He said no alternatives are being ruled out at this stage, even including an acquisition on Crown's part rather than a sale of any or all of its assets.

Crown has been at the center of a bitter labor dispute that began in February 1996 with about 260 workers at its Pasadena refinery. Following the breakdown of negotiations for a union contract, the company began a lockout of union workers that has continued since.

The workers are represented by the Paper Allied Industrial Chemical Energy Workers International Union, formerly the Oil, Chemical and Atomic Workers Union.

"We feel the lockout has influenced this decision to sell the company," said Joe Drexler, the union's director of special projects in Denver. "This action was initiated with the false intent of restoring profitability. Obviously, they have not accomplished that."

Any potential buyout deal, Drexler said, would present the company with an opportunity to settle not only its labor problems but also suits filed against it for alleged civil rights and environmental violations.

Drexler said the union would have to be part of any negotiations for the sale of Crown Central assets involving its members.

"We are still the bargaining unit for these workers," he said.

The company is also facing a shareholder lawsuit alleging mismanagement filed by former or current union workers who recently bought shares in the company.

In addition to its two refineries, which can process a combined total of 152,000 barrels of oil per day, the company has 343 gasoline stations and convenience stores in the United States.

The announcement that the company was seeking buyers sent its stock up 1 1/8, or about 15 percent, to close at 8 1/4.

Copyright 1999 Houston Chronicle