18 April 2007 18:23 [Source: ICIS news]
TORONTO (ICIS news)--Methanex, the Canada-based international methanol maker, is not likely to become the target of a leveraged buyout (LBO), analysts at Toronto-based RBC Capital Markets said on Wednesday.
The analysts calculated that methanol contract prices would need to stay above $275/tonne for a long time to justify an LBO.
“We believe this price assumption would be quite optimistic,” RBC said, and pointed to large new industry capacity due to come onstream in coming years.
RBC expects long-term methanol prices of around $205/tonne.
The April methanol contract for the US market averaged $354/tonne, according to global chemical intelligence service ICIS pricing. That is down from a January peak at $584/tonne.
Methanex’s shares were priced at $23.18/share, down 1.61%, in early Wednesday afternoon trading in
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