Rhodia claims EUR 570m from Sanofi-Aventis

9th May 2005, Comments 0 comments

PARIS, May 9 (AFP) - French specialty chemicals group Rhodia is claiming at least EUR 570 million (USD 731 million) in compensation in a dispute with its main shareholder Sanofi-Aventis under a complaint registered with US authorities.

PARIS, May 9 (AFP) - French specialty chemicals group Rhodia is claiming at least EUR 570 million (USD 731 million) in compensation in a dispute with its main shareholder Sanofi-Aventis under a complaint registered with US authorities.  

In a filing with the US Securities and Exchange Commission, Rhodia said it had had informed Sanofi-Aventis on April 13 that it was starting proceedings.  

The claim includes EUR 125 million for environmental liabilities and another EUR 445 million to cover retirement costs.  

Rhodia was spun off as a separate chemicals entity by France's Rhone-Poulenc when it merged with German company Hoechst.  

Rhone-Poulenc and Hoechst became the pharmaceutical group Aventis. In 2004, Sanofi-Synthelabo bought Aventis in a controversial takeover.  

In the SEC filing, Rhodia noted that Sanofi-Aventis had already given it EUR 88 milliion in 2003 to cover future ecological risks. But given the extent of liabilities, the group started procedures in the United States and in Brazil to obtain supplementary reparations.

 

© AFP

Subject: French News

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