BP hires 2 banks to look at chemical options
Mar 7, 2005 04:57 AM ET
(Reuters) - Oil firm BP said on Monday it has hired investment banks Morgan Stanley and Goldman Sachs to look at options for part of its petrochemical business, in a move which could lead to one of the biggest flotations this year.
"What they're advising us on is options for a disposal. It's more than likely to be a New York flotation, but no final decision has been taken yet," a BP spokesman said in London.
BP believes that New York, home of Dow Chemical Co. and DuPont Co. , would be a more natural market for its flotation.
The London-listed oil giant announced last April it was looking at options for its petrochemical business, made up of its lower margin olefins and derivatives activities, and valued at about $7 billion.
BP said then it would keep a majority holding in the company.
The assets had been on the block for some time after BP Chief Executive John Browne said he was looking at ways to improve persistently weak chemicals margins.
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