ICI Runcorn site sell-off - latest rumours

["Ms. Viv Mountford" <vivmount@greener.u-net.com>]

Please excuse any cross-postings.
Last November ICI announced their intention to sell their chlor-chemical 
production facilities at their Runcorn UK site.  Here are copies of 
articles in the two local weekly newspapers which give the latest sales 
rumours.
Viv
Viv Mountford (Ms)
Industry & Pollution Activist
Halton Friends of the Earth Group,  Cheshire, England
Email vivmount@greener.u-net.com
Phone (44)-1928-566236

"Runcorn World"  29/7/98

ICI in ?250m auction?

SPECULATION is intensifying that ICI's Runcorn site is about
 to go under the hammer in a ?250 million auction.
   Unconfirmed reports have claimed that the race to buy the
chlorine manufacturing business is set to be fought  between
two venture capital companies.
   Advent International,  which owns the HMV music empire, is
believed to be battling a consortium involving CVC capital partners.
   But Huntsman Chemicals, a US-based rival of ICI, is also
thought to be formulating a bid. This news comes in the wake
of a slump in ICI's share price following a profit warning on Thursday.
   The company blamed the high sterling exchange rate, which
makes British exports relatively expensive, and the economic crisis
in East Asia, for an expected dive in profits. ICI's share price slumped
to 780p, down 131p, as profit projections were revised downwards
by ?100 million.
   Speaking from the company's London headquarters, spokesman
John Edgar said he did not think that jobs in Runcorn  would
necessarily be  affected by the profit revision.
   An ICI spokeswoman at Runcorn said of the latest speculation:
'We can't comment on market rumour.



"Runcorn Weekly News" 30/7/98

SELL OFF - Two groups in battle to buy chlorine business

ICI WANTS ?250M FOR RUNCORN SITE

Reporter: Grant Woodward

ICI's Runcorn site could be sold for ?250 million as the chemicals giant 
looks to  offload its fluctuating chlorine business.
   Reports suggest that two groups, Advent International and a consortium 
which includes CVC Capital Partners, are battling it out to clinch the deal 
which ICI hopes to complete by the end of the year.
   Advent International has 16  offices around the world and a portfolio 
which features the HMV Media Group and Thomson Directories.
   CVC Capital Partners recently announced it had raised ?1.8bn for new 
deals so it would have no problems funding the multimillion pound buy-out.
   ICI's chlorine business is based mainly at Runcorn's Weston Point plant. 
It produces caustic soda, chlorine and sulphuric acid for industrial use as 
well as a range of chlorine derivatives used in coolants and plastics.
   The business has sales of around ?500m per annum, but profits have 
varied wildly in recent years.
   A spokesman for ICI refused to comment on the news.

--------------- + Inserted in a separate box:-

SHARES in chemicals company ICI, which has a plant in Runcorn, crashed 
after the group warned that its profits would drop by up to ?100 million.
   The state of the pound, the Asian crisis and deepening problems in its 
industrial chemicals business were the factors blamed for the slump, which 
has been seen throughout the industry.
   ICI's expected profits for the year have now been cut from ?500 million 
to ?400 million, but its chief executive, Charles Miller Smith, said the 
company was 'just being prudent' with its caution on profits.

------------