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Chemical industry weekly news roundup, 8 March
2:55 PM MST | March 8, 2013 | By LINDSAY FROST
This Week in CW:
A. Schulman on Monday announced an aggressive bid to acquire Ferro Corp. for $6.50/share—a 25% premium on Ferro’s closing price on 1 March and a 32% premium over the average trading price spanning a 60-day period, less than three weeks after Ferro’s Board of Directors privately rejected the takeover. On Thursday, at least one shareholder came out in criticism against Ferro’s refusal to enter into negotiations with A. Schulman.
The Petrochemical Industries Company (PIC) of Kuwait has been ordered to pay $2.48 billion in full damages by the International Court of Arbitration of the International Chamber of Commerce (ICC) to Dow Chemical—representing interest and costs in the arbitration case between the two companies. This represents the final steps of closing the case, and the final transaction of $318 million is in addition to the $2.16 billion already awarded to Dow.
Westlake says it is purchasing Saint-Gobain’s US-based plyvinyl chloride (PVC) pipe and foundations business for $175 million in cash. The transaction is expected to close in the second quarter 2013.
Around the Web:
Bloomberg said on Thursday that the largest US banks are debating whether to disregard a Federal Reserve request to hold, and instead announce their dividend plans shortly after the central bank’s stress tests are released. The Fed has asked 18 major firms to wait until next week, even though the lenders got preliminary word Thursday about whether their capital plans were approved.
According to The Age (Australia), Australian manufacturing lobbyists says the country should “end its bickering” over a carbon price, and instead move to an emissions trading scheme (ETS). An industry group executive says the fixed carbon tax should be scrapped, with the policy changed to an internationally linked ETS where markets determine the carbon price.