PPG may sell chlor-alkali ops soon – Deutsche

20 March 2007 16:34  [Source: ICIS news]

TORONTO (ICIS news)--US coatings, chemicals and glass firm PPG could soon sell its chlor-alkali business to help finance acquisitions in the consolidating coatings industry, Deutsche Bank said on Tuesday.

 

PPG was expected to eventually sell the chlor-alkali business, but not immediately, Deutsche said.

 

However, with cash-rich competitor Akzo planning acquisitions in coatings following the sale of its pharmaceuticals business last week PPG may need to act quickly.

 

Akzo has estimated net cash proceeds of $13.7bn (€10.3bn) following the sale of the pharmaceuticals business it could utilise for coatings acquisitions, Deutsche added.

 

A sale of the chlor-alkali assets would boost PPG’s financial strength and create a more attractive equity currency, Deutsche said.

 

Deutsche upgraded PPG’s stock from hold to buy and raised its price target for the shares from $67 to $80/share. The shares were priced at $70.84/share, up 0.75%, in Tuesday morning trading in New York.

 

($1 = €0.75)

By: Stefan Baumgarten
+1 713 525 2653

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