Plastics Today is reporting that Bayer is spinning off their materials science business, which include polyurethanes and their monomers, and also polycarbonates. There had been rumors for awhile that Bayer was going along this path, but I always figured someone would buy the business rather than have it spun-off.
I've never been party to a spin-off, rather I've been on the "spinning" side. While there are certain advantages (the company has more independence and can seek capital from a multitude of sources rather than just its new owner), there also disadvantages too (the stock markets are very short sighted and want good, consistent results every quarter). But spin-offs can also be a dumping ground for all the junk that the spinning company wants to rid itself of without any of the legal or PR issues associated with it. Want to cut your labor force by x thousand and not have to worry about the negative PR? Put them in the spin-off and let them bloody their hands while your hands stay clean. When there is a contract between a buyer and a seller [*], it's a lot tougher to shovel some dirt under the rug.
I'm just speaking in general terms. I have no idea if that will happen here at all. Just wishing everyone on both sides of the future spin-off all the best.
[*] Or should I say between a Bayer and a seller? Ha ha ha. I crack myself up.