17 March 2010 15:59 [Source: ICIS news]
TORONTO (ICIS news)--German specialty chemicals producer Cognis on Wednesday declined to confirm reports that the company will be sold rather than floated in an initial public offer (IPO).
“The reports by Reuters are speculative, we will not comment on that,” a spokesperson told ICIS news.
However, Cognis' owners – a group of private equity firms advised by Permira and Goldman Sachs – would eventually dispose of the specialty chemicals business, the spokesperson said.
Reports in the German business press on Wednesday, and by Reuters the day before, said that Cognis was pursuing a “dual-track” strategy.
That is, the company was seeking an outright sale, likely to a strategic investor. Should that fail, Cognis and its owners were preparing an initial public offering, likely to be launched in the second half of the year, the reports said, citing financial market sources.
Meanwhile, Germany-based chemical distribution major Brenntag, which is also owned by private equity, said this week it was going ahead with an IPO that could be worth some €800m ($1.1bn) and increase its capital by some €600m, depending on market demand.
($1 = €0.73)
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