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Hoechst, Rhone rejig merger?
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May 11, 1999: 4:35 a.m. ET
Report: chemical giants to revise merger plan to soothe ownership concerns
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LONDON (CNNfn) - Chemical giants Hoechst of Germany and France's Rhône-Poulenc plan to revise their planned merger to soothe concerns over the ownership structure of the new company, according to a report published Tuesday.
The boards of both companies are due to meet Tuesday to discuss the plan and are expected to approve a deal which would see Hoechst absorbed by Rhône-Poulenc but leave shareholders in the German firm with a majority in the merged entity, according to The Wall Street Journal.
The companies' plans to merge by the end of the year, spin-off most of their chemicals arms and create a France-registered life-sciences giant to be called Aventis have been dogged by ownership squabbles and national interests.
The plan, agreed last December, called for shareholders in each firm to control 50 percent of Aventis but the revised plan would see Hoechst's stockholders take a 53 percent stake, said the report.
Rhône-Poulenc (PRRP) shares dipped 0.05 euros to 45.65 euros in Paris, while Hoechst (FHOE) climbed 0.85 euros to 42.90.
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Hoechst
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