Analysts Dismiss Report of Clariant Bid for Rhodia.(Clariant AG rumored to be interested in Rhodia S.A.)(Brief Article)

Chemical Week, November, 2001

Analysts have dismissed a Financial Times report last week that Clariant is planning an acquisition bid for Rhodia. "We think it's unlikely," says Tony Cox, analyst at Dresdner Kleinwort Wasserstein (London). Clariant and Rhodia refused to comment on the report. Analysts say that Clariant overpaid for BTP, which it acquired last year for SF2.8 billion ($1.7 billion), and that it is too heavily indebted to make another big purchase as a result.

Clariant included a SF1.2-billion goodwill writedown on the former BTP operations in its first-half accounts (CW, Aug. 22, p. 7). DSM recently confirmed that it had made a preliminary approach to Aventis with a view to buying Aventis's 25% stake in Rhodia (CW, Oct. 31, p. 7).