Clariant disposals to balance the books

Clariant plan to sell off several of their businesses to ease their balance sheet after a worse than expected first half in 2003. They decided against raising cash through a rights issue and this was welcomed by investors. Clariant's debts are three times their current value of equity since the possibility of a rights issue has been depressing share prices since March. After the disposals Clariant mean to focus on their colour technology businesses. The future remains uncertain for BTP, the struggling fine chemicals business which it bought at the top of the market and which has been the cause of most of the problems. Clariant have said that the first priority for the unit is restructuring.