BASF, Dow involved in price-fixing probe

14 March 2006 22:23  [Source: ICIS news]

HOUSTON (ICIS news)--BASF and Dow Chemical said on Tuesday they were subpoenaed by the US Department of Justice (DoJ) in an investigation of alleged anti-trust activities by polyurethane chemical producers.

The probe concerns possible price fixing in the methylene diphenyl di-isocyanate (MDI) and toluene di-isocyanate (TDI) and polyols markets.

The confirmations brings the number of companies that have acknowledged being investigated to three. Bayer confirmed last week that it was served with a subpoena on 16 February.

In a filing with the US Securities and Exchange Commission, Bayer said it is facing allegations of price fixing in multiple civil law suits. Those suits, whose plaintiffs are seeking class-action status, have been consolidated in a federal district court in Kansas, Bayer said.

BASF said it was unaware of any violations. The company said it would cooperate with investigators, but added that it would not comment further because the case is ongoing.

Dow, too, said it plans to cooperate fully with the DoJ.  “It is our hope that this investigation will move forward quickly and resolve any concerns about Dow's participation in these markets,” the company said in a statement.

The DoJ on Tuesday would not comment directly on the reported industry-wide probe.

“We have had different investigations in the chemicals industry that have been concluded, and we have a variety of investigations in the chemicals industry that are ongoing, but we cannot comment on any specific company or a particular investigation,” said a DOJ antitrust spokeswoman.

Other major producers of TDI, MDI and polyols include Huntsman and Lyondell, neither of which returned calls immediately on Tuesday for comment.

(Additional reporting by Joe Kamalick)

By: Joseph Lohan
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