ICI exercises option for Huntsman to buy ICI shares in business

LONDON (Nov. 5)—Huntsman International L.L.C. and ICI P.L.C. are holding negotiations on the value of ICI's 30-percent holding in Huntsman Specialty Chemical Corp. after ICI exercised a "put" option in their sale agreement, obligating Huntsman to buy ICI's shareholding in the polyurethane materials and systems business. Last November, Huntsman said it would acquire the ICI shareholding for $365 million plus interest, by mid-2001, completing its purchase of ICI Polyurethanes. However, these plans have been stalled by Huntsman's efforts to enlist the support of equity firms to finance the deal. In a letter to shareholders, ICI said it was "unlikely" it would receive any proceeds from the sale this year, and warned they could be deferred even beyond 2002. The deal is part of Huntsman's original purchase agreement of the ICI assets in 1999.