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Categories: Mergers and Acquisitions

Henkel CEO -Finance Cost of National Starch Buy Up

Source: Reuters
02/10/2008

Frankfurt, Oct 2 - Financing costs for Henkel's 2.7 billion pound ($4.8 billion) acquisition of parts of ICI's National Starch are rising due to the credit crisis, Henkel's chief executive told a German newspaper on Wednesday.

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"We are facing higher spreads," Kasper Rorsted told Boersen Zeitung in an interview.

"We are now assuming that interest payments will be somewhat higher. But otherwise, we don't see any problem on the financing side."

The company had expected the extra revenues from National Starch would largely cover interest payments.

Rorsted said placing a bond remained an option for the company and that talks on the planned full or partial sale of its stake in U.S. cleaning services provider Ecolab were underway.

Henkel is also in talks to sell its Duck adhesives business and was interested in making acquisitions in the cosmetics sector, he said.



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