Abstract
Germany's Hoechst and France's Rhone-Poulenc have worked out a new agreement and timetable for their proposed merger into a pharmaceuticals company called Aventis. It will be presented to shareholders at special meetings this summer. Under the agreement, Hoechst shareholders will own 53% of the new company, and Rhone-Poulenc shareholders will own the remaining 47%. Originally, the merger was envisioned as a straight 50-50 split, but it is widely thought that Kuwait Petroleum Corp. (KPC), Hoechst's largest shareholder, pressed for the new division. KPC is also thought to be behind the speedup of the merger. Seen as a complicated two-step process taking place over three years when it was announced late last year, the merger is now set to be wrapped up by this November. As it currently stands, Hoechst will distribute about $1.6 billion as special dividends to its shareholders, dependent upon successful completion of the merger. It will also buy back up to ...
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