06 March 2000 00:00 [Source: ICB]
Dexter is now reviewing a range of options for its business, while continuing to shun ISP's $930m hostile bid (ECN 7 February 2000). Dexter said ISP's offer was 'inadequate' and has also questioned its ability to finance its proposed deal.
The two companies have been involved in a bitter interchange of letters since last year when Dexter rejected a bid from ISP worth $45/share.
Grahame Walker, chairman and chief executive officer for Dexter, said: 'Based on the current circumstances that our company is facing, our board has decided to institute a process in which we will survey all of the company's available options.'
These include a merger, sale, financial restructuring of the company, a spin off or sale of one or more of the company's businesses.
The company refused to say which of its businesses may go but commented that speciality polymers 'had the most room for improvement'.
Despite announcing plummeting results last week, ISP was still confident about being able to finance its proposed deal. Operating profit slumped 8% on last year to $137m.
The company blamed the poor results on low pricing of intermediates. Sales also saw a decline to $787.4m, saved only by turnover acquired with Monsanto's Kelco alginates business. Dexter said that the results confirmed its fears and added that ISP 'clearly still has issues to deal with'.
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