ERJ staff report (PR)
London - Kraton’s proposed business combination with LCY Chemical Corp.’s styrenic block copolymer (SBC) business is still on the cards it seems – but you have to read down to the smallprint in Kraton's latest quarterly results to check.
At the end of June, Houston-based Kraton’s board said it would withdraw its support for the deal unless it could renegotiate terms with LCY.
This followed a woeful first quarter for the would-be Taiwanese partner, which left a question-mark over the sums behind the proposed combination (see ERJ report).
Apart from the smallprint, Kraton’s second-quarter statement of 30 July, makes only one direct reference to LCY - a note that professional fees and other costs for the proposed deal had added $2.8 million to its selling, general and administrative expenses and R&D costs.
Whether or not these costs include the hiring of a 'divorce' or a pre-nup lawyer remains to be seen.