Huntsman Corp. is subpoenaed in probe

0 Comments | Deseret News (Salt Lake City), Mar 17, 2006 | by Deseret Morning News

NEW YORK -- Salt Lake-based Huntsman Corp. said Thursday it is cooperating with the U.S. Justice Department, which recently issued subpoenas to Huntsman and several other chemical companies in its ongoing probe into possible price-fixing on polyurethane and related products.

"We do not know the basis of the grand jury investigation, nor do we know why Huntsman was served with a subpoena," Huntsman spokesman Don Olsen told the Deseret Morning News Thursday. "But, we are cooperating fully with the Department of Justice in responding to the subpoena."

Huntsman, which has its administrative offices in the Woodlands, Texas, received a subpoena on Feb. 16 related to polyurethane products, Olsen said.

Huntsman, Lyondell Chemical Co., Dow Chemical Co. and German chemical giant BASF AG all have said they have been served with subpoenas as part of the DOJ probe.

The chemicals at issue in the subpoenas are used in making polyurethane products for the furniture, packaging, transportation and other industries. DOJ has said the antitrust division is broadly investigating price-fixing in international plastics, chemicals and commodities markets.

Lyondell said in its 10K filing Wednesday that it received, on Feb. 15, a subpoena from the DOJ's Antitrust Division seeking documents regarding polyurethane products. The Houston-based petrochemical company said in the document that it doesn't believe it violated antitrust laws and will cooperate with the government probe.

The Justice Department had no immediate comment.

Dow Chemical said it received a subpoena and plans to cooperate fully.

BASF also was subpoenaed, a spokesman said, although he didn't know when the company received the request for information. The company said in a written statement that it is not aware of any violations of antitrust laws, and that it will cooperate with the probe.

Contributing: Jenifer K. Nii; The Associated Press