Occidental to divest Lyondell stake for $520m

11 May 2007 15:00  [Source: ICIS news]

TORONTO (ICIS news)--Occidental Petroleum plans to sell its entire 8.3% stake, almost 21m shares, in US petrochemicals and refining major Lyondell, it said in a statement on Friday morning, just before stock markets opened.

 

Occidental already sold 7m Lyondell shares, for $32/share, to an unidentified buyer in a private deal, it said.

 

It also entered into a swap deal for the remaining 14m shares. The swap would enable it to achieve a price of around $32/share for those shares, it said.

 

Occidental plans to sell the remaining 14m shares in open market sales in the next few months.

 

The divestment is expected to yield $520m (€385m) in proceeds and a net gain of about $200m, the Los Angeles, California-based oil and gas major said.

 

Lyondell’s shares closed at $33.07/share, down 1.4%, on Thursday in New York.

 

Trading in the stock was highly volatile after markets opened on Friday morning, with the stock rising quickly by 6% to over $35/share. 

 

($1 = €0.74)

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly