06 March 2008 14:56 [Source: ICIS news]
TORONTO (ICIS news)--Investment banks have started the €2bn ($3.1bn) sale of a 25% minority stake in Evonik Industries, which includes the former Degussa specialty chemicals business, German media reported on Thursday.
According to Frankfurter Allgemeine Zeitung, two banks charged with overseeing the sale – Deutsche Bank and Morgan Stanley - have begun sending out “information packages” to 10 investment funds interested in buying a minority stake in Evonik.
German business daily Financial Times Deutschland reported last week that RAG was seeking to sell a 25% stake in Evonik to a financial investor as capital market conditions for a listing had deteriorated.
The bidders would need to submit first non-binding offers by the end of the month, Frankfurter Allgemeine Zeitung said, citing unnamed financial market sources close to the deal.
Wolf-Rudiger Grohmann, spokesman for Evonik owner RAG Stiftung in ?xml:namespace>
Potential investors included private equity firms with considerable expertise in chemicals mergers and acquisitions such as Blackstone,
RAG was hoping to float an additional 50% on the stock market in 2009 and would retain the remaining 25%, according to the paper.
Evonik CEO Werner Muller and the powerful IG BCE union chief Hubertus Schmoldt are believed to favour an initial sale to an investor rather than a cold start on the German stock market, which is currently in a depressed state.
Schmoldt was quoted by the paper as saying that going to the stock market first would put the company under pressure to perform rather than opening a more long-term perspective.
($1 = €0.65)
Dede Williams contributed to this story
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