AUSTRIA: POTENTIAL BUYERS FOR LENZING

Article Abstract:

Bank Austria, which together with Creditanstalt holds 50.01% of the stock of Lenzing AG, has confirmed that CVC Capital Partners of the UK has indicated interest in buying the banks' stakes in the Austrian Lenzing-based fibre producer. CVC holds 60% of the stock of Lenzing's competitor Acordis. Reportedly the latter's viscose fibre division would be transferred to Lenzing. This would make Lenzing by far the biggest viscose fibre maker worldwide. Bank Austria has been looking for buyer for Lenzing for some years. Following an improvement in 1998, Lenzing is expected to make losses in 1999. Beside the Lyocell factory , Lenzing's subsidiaries in the US and Indonesia are making losses. According to the daily paper Oberosterreichische Nachrichten, also a group of Austrian industrialists is eyeing Lenzing. There is speculation about the industrialist Cornelius Grupp being interested in Lenzing, whose bankrupt subsidiary Glanzstoff Austria he acquired in 1994. Mr Grupp would not comment on the reports.

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AUSTRIA: LENZING SALE POSTPONED

Article Abstract:

Bank Austria has postponed the decision on the sale of its 80% stake in the fibre producer Lenzing until the end of March 2001. Bidders for the bank's stake are a group of investors around the industrialists Hannes Androsch and CVC Capital Partners of the UK. The former is believed to have bid EUR 80 and the latter EUR 90 per share. On 21 December 2000 Lenzing share price was at EUR 79.

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AUSTRIA: EU TO LOOK AT LENZING SALE

Article Abstract:

The European Commission is to investigate the sale of the Austrian fibre producer Lenzing AG to CVC Capital Partners of the UK. The investigation is expected to take four months. If the Commission approves the deal, CVC will have to submit an offer for the remaining 20% of Lenzing shares. The full takeover might cost about EUR 335mn.

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