DuPont confirms Koch negotiations

DuPont, USA, finally announced today (11/08) that it is in exclusive negotiations with subsidiaries of Koch Industries Inc., regarding the possible sale of DuPont Textiles & Interiors (DTI).

The move was first revealed on Inteletex back in March 2003, but both DuPont and Koch Industries refused to comment at the time. On April 14 DuPont did announce that it was engaged in preliminary negotiations to sell DTI, but did not name Koch.

DuPont has told its employees that Koch representatives will now visit DTI sites as part of the due diligence process. But given the ongoing nature of the discussions, DuPont said it would not provide any additional information at this time.

"There can be no assurance that the negotiations will result in an agreement being reached or, if an agreement is reached, of the terms, conditions or timing of any potential transaction," said DuPont.

The Delaware-based company added that it does not intend to make any further public announcement unless, and until, a definitive agreement has been signed or discussions have been terminated.

Last week, DuPont announced a restructuring of DuPont Canada in preparation for the separation of DTI, having earlier this year made a successful bid for all outstanding minority holdings its subsidiary.

As part of the restructuring process, the existing company, DuPont Canada Inc., will become part of global DTI, and will be called DuPont Textiles & Interiors Canada Inc. The new company will comprise all Canadian DTI business operations, located primarily in Kingston and Maitland, Ontario, and non-DTI manufacturing operations of DuPont Canada. At the same time certain non-DTI assets of DuPont Canada will become part of DuPont and go into a new company to be named E.I. du Pont Canada.

The new corporate structure will be fully operational by October 1, 2003.