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Article: Carbide to separate gases from chemicals. (Union Carbide corporate reorganization) (United States/Americas)
- Article from:
- Chemical Week
- Article date:
- January 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Access Intelligence, LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Seeking "a new beginning", according to CEO Robert D. Kennedy, Union Carbide plans to split into two pieces--a $2.4-billion/year industrial gas company, and a $5-billion/year chemicals and plastics company. Management will also sell $500 million of assets, using proceeds to reduce debt, and take additional cost-cutting measures.
"Carbide has been unfocused and overweight," says Kennedy. With these moves, "The focus will be there. We'll get rid of the baggage. It's very energizing for our people."
Wall Street pegs the pieces at $22-$23/share, vs. trading value around $17/share before the announcement. "It's one way to unlock value," says Bill Young ...