Chemtura Mulls Sale, Other strategic Alternatives

Specialty chemicals maker Chemtura is considering "a wide range of strategic alternatives" for itself, including a sale of the company. Chemtura has hired investment banking firm Merrill Lynch to act as its financial adviser. The company has also formed a special committee of independent directors to oversee the process. The firm seems to have been heading toward a sale for some time. It has been slimming down and selling nonperforming assets, especially since its merger with Great Lakes Chemical in 2005. In April of this year, the firm announced a plan to cut 10% of its workforce—620 people, including several senior managers—to save $50 million by 2008. About a month later, it announced plans to cut two polymer additive plants in Italy and about 200 additional jobs. Chemtura was rumored to have put itself up for sale earlier this year. At around the same time, billionaire investor Nelson Peltz took a 4.1% stake in Chemtura and placed one of his associates on the company's board of directors.