Chemtura to Review Options, Including Possible Sale

§ Chemtura says its board has authorized management to consider a wide range of strategic alternatives available to the company to enhance shareholder value
§ Chemtura → consider a wide range of strategic alternatives available to the company to enhance shareholder value → formed a committee of independent directors to oversee the process → Merrill Lynch to act as financial adviser
§ Strategic alternatives
o select business divestitures,
o value-creating acquisitions,
o changes to the company's capital structure,
o possible sale,
o merger,
o other business combination
§ Chemtura's fundamentals → heavily dependent on housing and auto
§ Restructuring plan → eliminate about 620 jobs → would result in about $50 million/year in costs savings beginning in 2008
§ In order to "place greater focus on its core businesses”
o Discontinued antioxidant production
o sold its $20million /year organic peroxide business
o sold its $35-million/year optical monomers business
§ Hands-on influence and involvement
o seeks to invest in undervalued and under-performing public companies
o prefers to work closely with the management of those companies to effect positive change through active
§ Chemtura → it does not expect to disclose any further developments regarding its exploration of strategic alternatives → unless and until the board completes the review
§ Chemtura's earnings improved in the most recent quarter for which it has reported
o Third-quarter net income of $2 million including special items → Sales rose 9% → $950 million