Europe chem stocks fall on Bear Stearns backlash

17 March 2008 11:04  [Source: ICIS news]

LONDON (ICIS news)--European chemicals stocks fell on Monday after JPMorgan Chase said it would buy out troubled investment bank Bear Stearns, reviving fears of a global credit crisis.

 

JPMorgan Chase agreed on Sunday to buy Bear Stearns for $240m (€153.6m) in a stock-swap deal. The US Federal Reserve will provide financing for the transaction, including support for as much as $30bn of Bear Stearns’ less-liquid assets.

 

Europe’s Dow Jones Stoxx chemical index fell by more than 2% by 9:13 GMT, while London’s FTSE had dropped 2.7% and Germany’s DAX 3.8%.

 

Akzo Nobel shares dropped more than 3%, Lanxess was down 5%, while BASF and Bayer both saw moderate losses.

 

In Asia, the buyout coupled with a weakening dollar and record crude oil prices caused indexes across the region to fall up to 5%.

 

($1 = €0.64)

 

By: Mark Watts
+44 20 8652 3214

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