MONTEDISON SELLS REMAININGSTAKE IN ERBAMONT

The Italian chemical company Montedison has sold its remaining 49% stake in Erbamont for 650 billion lire ($439.5 million) to a company known as Holdback Holdings.

Little is known about the company, but it has been suggested that it consists of various foreign financial institutions which are under the guidance of the Union Bank of Switzerland, according to a report in the Wall Street Journal.

Holdback Holdings has also acquired an option to sell the stake in Erbamont on to Procordia of Sweden in 1994 or 1995. Procordia has 51% stake in Erbamont through its pharmaceutical subsidiary, Kabi Pharmacia (Marketletters passim). The option to sell can only be exercised next year or the year after, under the terms of the agreement.