Degussa staff protest at possible company break-up

30 November 2005 18:00  [Source: ICIS news]

FRANKFURT (ICIS news)--Around 1,500 Degussa employees staged a demonstration at the Marl, Germany site on Wednesday to protest at a possible break-up of the German speciality chemicals group.

The protest followed a special assembly called by the works council to discuss rumours that German energy group RAG, which owns 50.1% of Degussa, might be planning a full takeover and could seek to finance this through a sale of building chemicals and fine chemicals activities.

Tension in the workforce had been rising since late Monday over reports leaked to the German press. These said the Boston Consulting Group, engaged by Degussa’s management to review strategy, had recommended the sale of the businesses.
Degussa’s supervisory board is due to review the consultants’ recommendations on 13 December.

The works council said in a statement that it “has been informed” that RAG and Degussa’s other large shareholder, Eon (43%), are currently discussing how Eon will dispose of its remaining shares and how this would impact an initial public offering (IPO)planned by RAG.

The council’s statement called on Degussa and RAG management to “safeguard the company’s substance,” and discuss with employees any changes that would affect jobs.

Both Degussa and RAG thus far have declined comment on their discussions. However, a Degussa spokesperson said that the company has never considered selling the building chemicals unit.

Earlier on Wednesday, the German chemicals union, IG BCE, said the supervisory boards of Degussa and RAG had not discussed a sale of any assets.

By: Dede Williams
+44 20 8652 3214

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