Evonik rejects report that group will be broken up

23 July 2009 16:29  [Source: ICIS news]

TORONTO (ICIS news)--Evonik Industries has rejected a media report that speculated the Germany-based diversified international specialty chemicals group will be broken up, it said on Thursday.

“We reject speculation that the group will be broken up,” spokeswoman Barbara Muller told ICIS news.

She was commenting on a report by Financial Times Deutschland that Evonik had hired investment bank JP Morgan to review its portfolio as it was considering breaking up the group, retaining its chemicals business but shedding the energy and real estate divisions.

Muller said that Evonik, with the support of JP Morgan, was performing a portfolio analysis on all its activities. However, this was a routine exercise required of any good management organisation, she stressed.

“We are examining what our essential value-drivers are and how these can be developed over the long run,” she said.

“This process is essential to steering the businesses in the right direction.”

The paper, citing unidentified banking and company sources, said Evonik’s board could make a major strategic decision as early as this year.

Private equity firm CVC, which last year acquired a 25.01% stake in Evonik, was pressuring the Essen-based company to improve its profitability, the paper said.

For more on Evonik visit ICIS company intelligence
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By: Stefan Baumgarten
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