Replies to post #35359 on Chemtura Corp (fka CHMT)

[oaps222]

Just in case, it was not shared with you:

http://www.chemweek.com/newsletters/cbd/21010.html

1:55 PM EDT | August 24, 2009

A rundown of the industry’s key events from CW Business Daily:
Chemtura Explores Asset Sales • DuPont Invests $120 Million in Photovoltaic Materials Capacity • Equistar to Add Feedstock Flexibility at TX Olefins Plant • Monsanto Accuses DuPont of Spreading Misinformation • Lonza Offers to Acquire Patheon • Cargill’s Earnings Tumble Japan's DIC Records Big Fall in First-Quarter Profits

Chemtura, which filed for bankruptcy in March, is exploring the sale of several assets, including its polyvinyl chloride (PVC) additives business and polyurethane dispersions business. Lazard, which has been retained by Chemtura as investment banker to advise on restructuring and M&A, has worked with the company to identify potential acquirers for certain non-core assets and “sale processes are ongoing,” according to court filings. Chemtura was in discussions with bidders for its agricultural chemical and fuel additives prior to its bankruptcy filing but it is not clear whether those assets are still being considered for sale. Chemtura recorded a pre-tax impairment charge of $60 million to write-down the value of property, plant and equipment in its PVC additives business during the second quarter.

DuPont says it will invest $120 million to increase ...

[Xenn]

Thanx Oaps...

I hope that Chemtura ends up offloading their PVC additives division as opposed to the crop protection. Currently(and going forward), the crop protection is Chemtura's crown jewel.

It also bears pointing out that bond obligations notwithstanding, Chemtura needs to streamline their operations. The expected synergy that usually occurs due to a merger didn’t really materialize with Chemtura. The merger created a monolithic entity with too many tentacles off shooting in all directions.

This scenario is never good for a company, as it makes them woefully inefficient. They need to prune those business entities that are poor performers. This will enable them to focus on the cash cow areas of the company.

I would be more emboldened to hold Chemtura long term (several years) if they retained their crop business.

[fisherman2009]

I don't want to start any rampant speculation or rumors however I would like to mention something I heard a few days ago from my younger brother whom I share my apartment with. I turned him on to Chemtura a number of months ago. He only has about 15k but managed to get them in the low .20's. The other day he told me that while visiting the Yahoo message board (crap!!!!) he noticed someone had posted something about Amfine Chemicals wanting to make a serious offer to Chemtura for it's PVC business. I think such a statement is probably BS, but you never know. Generally I wouldn't take notice of such information, but at this point in the game with Chemtura wanting to sell assets it bears notice, ever so small that notice may be.