Although Hoechst has previously announced its intention of splitting offits pharmaceutical division, Hoechst Marion Roussel, as an independent unit which could be quoted on stock exchanges (Marketletter November 11, 1996), it now appears that the group's management board is having doubts about such a move. According to the Wall Street Journal, recent interviews with Hoechst board members confirmed they disagree about where to take the company.
The WSJ quotes Ernest Drew, the group's American board member, as saying that taking HMR public "is just a matter of time." But recent board appointee Klaus Schmieder told the journal that it is a matter of "if" not "when," and Hoechst may decide to retain full control if it makes the group more valuable. Instead of moving toward a strategic holding structure (outlined at last November's press conference), Mr Schmieder said Hoechst could be better off as a focused life-sciences company.
Decision Due In May Meantime, a spokesman for Hoechst at its German headquarters told the Marketletter that the company continues with its strategy of building up a management holding company. HMR, he added will become a legal entity, and it continues to be an option for the unit to get quoted on the stock exchange. Any final decision, the Hoechst source stated, will not come until the Hoechst annual board meeting, scheduled for May 6, and much will depend on how the financial markets perceive Hoechst and HMR during this time.
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