Germany's Petro Carbo Chem restates interest in Romania's Oltchim

02 November 2010 17:31  [Source: ICIS news]

PRAGUE (ICIS)--An activist shareholder in Romania's Oltchim has restated its interest in examining a bid for the financially-troubled company following pressure from the International Monetary Fund (IMF) for the privatisation of the Romanian state's 54.79% stake in the firm, the shareholder said on Tuesday.

"We yesterday sent a letter to the Ministry of the Economy reconfirming our interest in participating in the privatisation when it is started,“ Germany's Petro Carbo Chem (PCC), a 12.16% shareholder in Oltchim, said in a statement.

The ministry was not immediately available for comment on PCC's interest but Karoly Borbely, state secretary at the ministry, has confirmed that two investment funds are interested in buying the state's stake.

The IMF discussed the merits of privatising Oltchim during October talks on Romanian economic matters with the country's economy and finance ministries.

Oltchim declined to comment on expressions of interest in buying the state's majority shareholding, saying questions should be referred to Borbely.

The management of the company has been involved in a long-running disagreement with PCC over how best to restore its fortunes.

On 1 November, Oltchim announced it had been unable to raise the working capital to buy the raw materials needed to restart its Arpechim petrochemical unit, the closure of which has led to severe shortages of feedstock at the firm. It also announced increasing losses.

Oltchim’s main products are polyvinyl chloride (PVC), polyols, dioctyl phthalate (DOP) and caustic soda.

For more on PVC and DOP visit ICIS chemical intelligence
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By: Will Conroy
+44 20 8652 3214

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