RAG Advances Stock Offering

Following approval by a German government coalition, energy and chemical company RAG is set to list on the stock market next spring. Lanxess CEO Axel C. Heitmann recently said he wants to acquire Degussa, which makes up about two-thirds of RAG, but a stock listing would scuttle any such sale. The listing became wrapped up in German politics because it is contingent upon RAG's shift of its coal operations into an independent foundation responsible for long-term pensions and other obligations. Hubertus Schmoldt, who is head of the powerful German chemical industry trade union, IGBCE, and also vice chairman of RAG's supervisory board, told German newspapers last week that a Degussa acquisition is "definitely not the suitable object for Lanxess."