The Hindu Business Line : Lenzing AG denies selling stake to Birla group

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Coimbatore Feb. 10 The European man-made cellulose fibre major Lenzing AG has denied it is involved in any talks with any strategic investor, including India's Birla group, for the sale of its majority stake in Lenzing.

The denial from the Austrian company has been issued in the name of Lenzing AG's supervisory board chairman Mr Karl Schmutzer.

"As a member of the management of B&C Holding GmbH, which holds 88 per cent stake in Lenzing AG, I am able to confirm that we did not and do not hold talks of any kind concerning our share in Lenzing, neither with any strategic investor nor with any equity fund," Mr Schmutzer has said in a statement released to Business Line.

Denies rumours

Denying what he calls the recurrent rumours concerning sale of Lenzing to a strategic investor, in particular Birla group, Mr Schmutzer said he assumed these rumours were being deliberately spread by Lenzing AG competitors at the latter's customer base in order to cover up their shortcomings in technology and product quality.

"We are (B &C Holding) long-term key shareholders of major companies quoted on the Vienna stock exchange and are committed to securing the continuity and expansion of these companies in a sustainable way," he said.

Fibre business

Lenzing AG's fibre business holds top position in its segment in terms of size, product quality or technological expertise and no synergy effects resulting from joining up with any competitor could be identified, particularly not for the Lenzing's sites in Europe, Mr Schmutzer's statement said, adding that B&C Privatstiftung, the sole owner of B&C Holding, has not held any talks with regard to sale of Lenzing and the strategy of `our company continues unchanged' which was confirmed to him personally by the members of the foundation board.

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