Takeover talk lifts Ciba, Clariant

ZURICH: Shares in speciality chemicals firms Ciba and Clariant rose strongly on Thursday, boosted by fresh takeover talk following a $13.3 bn tie-up deal between Serono and Germany’s Merck.

“There are rumours that Dow (Chemical) is interested (in Ciba)... and Clariant (could be bought) by private equity,” said Alex Pasini, analyst at Lombard Odier Darier Hentsch, adding that the Serono-Merck deal had rekindled merger talk in the Swiss market.

Ciba shares rose more than 4% to a high of 74.75 francs and was still trading 3.9% higher at 74.30 francs in morning trade. Clariant shares were also up 3.4% at 16.85 francs. “The rumours are all being rekindled. Everything we have heard in the last few months is returning. Serono added fuel to the fire,” one dealer said.

Both companies declined to comment on rumours. Merger speculations surrounding the two companies have resurfaced from time to time as they restructure their business amid high raw material and energy costs. Traders said that a tie-up between Ciba and Dow Chemical could make sense.