DuPont Textiles Separation Will Affect DuPont Canada
As part of its offer to buy the outstanding shares of DuPont Canada Inc., DuPont has disclosed that it is in negotiations with a third party regarding the sale of DuPont Textiles & Interiors (DTI). Du...
As part of its offer to buy the outstanding shares of DuPont Canada Inc., DuPont has disclosed that it is in negotiations with a third party regarding the sale of DuPont Textiles & Interiors (DTI). DuPont intends to separate DTI by the end of 2003. The spin-off relates to DuPont Canada (Mississauga, ON) because DTI comprises a substantial portion of DuPont Canada’s business and operations.
If DuPont (Wilmington, DE) is not successful in acquiring 100% of the outstanding minority shares of DuPont Canada, the parent company intends to transfer its entire share ownership interest in DuPont Canada to DTI. DuPont Canada business segments include: nylon and engineering resins, performance coatings, specialty fibres and materials, and specialty polymers and films. DuPont Canada Inc. had net sales of $2,191 million in 2001. It has 3400 employees.
One minority shareholder has launched a lawsuit seeking, among other things, an injunction against the proposed acquisition by DuPont of the shares in DuPont Canada. The case was brought up State Circuit Court in Elkton, MD.
“DuPont Canada believes that there is no basis for, or merit to, the lawsuit, and DuPont Canada and its directors will vigorously pursue all available responses to the claim,” said Douglas W. Muzyka, president of DuPont Canada.