Category Archive for "Industrials/Basic Materials"

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Change at Linde Suggests an Acquisition Is Possible

  The PX discussion clearly caused significant disagreement at Linde and the fall out at the senior management level is significant. We believe that this opens Linde up for an acquisition, by either PX or APD. See prior research. It

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Air Products – Sit On The Sidelines, Or “Suit-Up”

In research published today we share thoughts about the proposed PX/Linde merger, which we think is more likely to be a PX acquisition of Linde – should it go ahead. However, what APD could do matters. We are assuming that

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Ethylene – The US Remains The Center Of Attention

In late March we published a longer term view of ethylene. Our focus was on what we still believe will be a weakening second half of 2016, possibly more accelerated if Europe is weak – a concern raised by CAT

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Monsanto/Bayer – Brexit Raises a Significant Currency Problem

While we think we have a willing buyer and seller on this deal, clearly negotiations have hit a stumbling block, with MON making it very clear that it is looking for other possible partners and BASF mentioned again in the

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Axiall – Don’t Listen For The Fat Lady Quite Yet!

  Lotte may consider themselves the “White Knight” for Axiall, but unless they are riding a very big horse and have very large amounts of money in the saddle bags, this story may be far from over. A stock bid

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AXLL – Expect a Sale Eventually – Stock Could Drop if WLK Suspends Interest

Since the publication of the most recent AXLL defense document 10 days ago, there has been (public) radio silence from WLK regarding the rejected WLK bids. Axiall seem confident that they can win a proxy fight, or at least keep

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Axiall Strikes Back, but Painting a Very Bleak Picture for Polyethylene vs PVC

On May 9th Axiall issued a presentation defending its position with regard to the hostile takeover move from Westlake and in anticipation of a potential proxy battle. It is a well-constructed presentation and obviously self-serving, but on the whole an

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Axiall – Something Else Up Its Sleeve?

Axiall’s apparent reluctance to engage with Westlake in a formal discussion with respect to Westlake’s offer (resulting in a higher bid from Westlake this morning) suggests one of two possible positions: Axiall believes that it can win a proxy battle

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SHW/VAL – An Expensive Deal Not Without Its Hurdles

The announced acquisition of Valspar by Sherwin Williams, while consistent with our broad view on consolidation does not really tick any of the boxes we identified. This is not a segment facing massive offshore competition, nor is it oversupplied. Both

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Sasol Delays Ethylene Plant – Axiall, Westlake and Eastman Should be Paying Attention

  Last week Sasol announced a “delay” to some of its US Gulf investments and suggested that its ethylene unit would now start-up in 2019 rather than 2018. The company gave cash flow management as a reason, but this is

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