Millennium Chemicals Takes Equistar Stake off Sale Block
RED BANK, NJ — Millennium Chemicals Inc. said it has taken its 29.5% stake in the Equistar Chemicals LP joint venture off the sale block because it has not received an “acceptable offer” for its share of the ethylene business owned jointly with Lyondell Chemical Co. and Occidental Petroleum Corp.
Millennium said it has held exploratory discussions with potential buyers over the last several months, following an offer to its Equistar Partners to sell them its stake in line with the “right of first offer” provisions of the business’s partnership agreement. Millennium Chairman and CEO William M. Landuyt said that due to the business’s cash generation and the belief that Equistar will appreciate in value as ethylene approaches the next peak in its cycle, “we do not think it is in the best interest of our shareholders to reduce our minimum value expectations in order to sell the investment at this time.”
Millennium and Occidental each hold a 29.5% stake in Equistar, and Lyonell owns 41% of the business.