Aventis has entered into discussions with the European Commission seeking additional flexibility in the disposal of its remaining stake in the specialty chemicals group Rhodia.
"As previously stated, our objective remains to divest all stakes in our non-core businesses - including Rhodia - by the end of 2004," said Patrick Langlois, chief financial officer of Aventis.
"Rhodia has developed a restructuring program to improve its performance, and an immediate forced disposal of our remaining stake could have a detrimental impact. Aventis and the other shareholders have a vested interest in ensuring an improvement in the company," Langlois said. "As a result, we would like to have, if needed, some additional flexibility from European anti-trust authorities, due to the exceptional circumstances facing Rhodia."
As part of the U.S. and EU approval for the business combination to create Aventis, a deadline of April 2004 was set for Aventis to reduce its 25.2 per cent stake in Rhodia to below 5 per cent. Aventis had already reduced its stake to 15.3 per cent (27.5 million shares) in May 2003 through a sale of 9.9 per cent of the Rhodia share capital to Credit Lyonnais.
Aventis' strategy is focused on prescription drugs and human vaccines. As part of this strategy, Aventis intends to divest its remaining non-core businesses, which also include investments in the chemical groups Wacker, DyStar and Clariant as well as the therapeutic proteins business Aventis Behring.