Hoechst didn't say how much of its 45% holding would be floated, but indicated that it may sell its entire stake in Clariant if markets remain favorable. The company also didn't say how much it intends to raise through the sale. The move is a consequence of Hoechst's strategy to focus on its life-sciences activities, which are being merged with similar businesses owned by Rhone-Poulenc into a new company called Aventis. Rhone plans to shed its stake in specialty-chemicals maker Rhodia SA as well. Hoechst said the secondary share offering of Clariant will take place in a bookbuilding process "before the summer vacation," in late July.

The German company said the move will allow Clariant to broaden its shareholder base and increase thefree-float and liquidity of its shares. It may also be accompanied by a bond offering convertible into Clariant shares, said Hoechst.

Clariant will seek to list its shares on the Frankfurt stock exchange. The secondary offering and the possible bond issue will be led by Dresdner Kleinwort Benson and Morgan Stanley Dean Witter & Co. ABN Amro Rothschild will advise Hoechst on the transaction. When Hoechst acquired the Clariant stake in 1997, valued then at 900 million euros ($937 million), the German firm agreed that any shares it resold would be broadly distributed on the market. If that can be achieved without disrupting the market, Hoechst said it could sell the entire stake in Clariant.

(The Wall Street Journal)