Chemical Industry Explores The Benefits of Going Private.(Statistical Data Included)

Chemical Market Reporter, August, 1999 by CHANG, JOSEPH

Millennium mulls buying back its undervalued stock. PUBLIC CHEMICAL companies trading at severely depressed multiples compared to the broader market may want to explore going private. While there are advantages to being a public company, being privately owned offers benefits exclusive to the chemical industry and the management of the volatile petrochemicals cycle.

"If your sector is out of favor, the market may misvalue your company, and that's the case in the chemical industry today," says Peter Young, president of the New York-based chemicals and life sciences investment banking firm Young & Partners. "Certain companies are just not getting enough benefits from being public to offset the significant expenses and burdens associated with being...

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