Roundup: Bayer cuts Covestro IPO price amid stock market slump; VW shuffles board amid scandal; ATI completes repairs to hot-…
Bayer cuts price of Covestro IPO
Bayer AG on Thursday cut the amount it wants to raise from the initial public offering of its plastics unit by $1.1 billion to generate sufficient investor appetite amid a slump in global stock markets and the Volkswagen AG emissions scandal.
Bayer lowered the price range for Covestro AG, which makes plastics used in car bumpers, to 21.50-24.50 euros (about $24 to $27.40) per share. The original price range was 26.50-35.50 euros (about $29.65 to $39.70).
The decision to spin off plastics to focus on drugs and agrochemicals coincided with an 8.8 percent tumble in the Stoxx 600 Index of European companies in the third quarter, as concern over China's economic growth and confusion over the trajectory of U.S. interest rates stoked market volatility. In Germany, the admission by Volkswagen that it cheated on emissions tests in the United States has weighed on stock prices.
ATI finishes repairs to new hot-rolling mill
Allegheny Technologies' new hot-rolling mill in Harrison successfully produced stainless steel coils this week as repairs to a cutting machine put the operation back on line.
The company announced Thursday that it had successfully repaired its rotary crop shear, which trims metal like a giant knife.
A component of the shear was discovered to be faulty during routine maintenance May 28, and the company worried the defect would cost it about $20 million in profits this year.
According to the company, production rates were maintained at the $1.2 billion plant while the shear was down, but the plant was not operating at its full potential.
VW confirms CFO to become chairman
Volkswagen has confirmed Chief Financial Officer Hans Dieter Poetsch will become board chairman as the automaker faces a scandal over cars that were equipped to cheat on U.S. government emissions tests.
Poetsch, 64, has been CFO since 2003. The company said he would be appointed to the board and then elected chairman.
The board said in a statement Thursday that it is postponing a special shareholders' meeting slated for Nov. 9. It said an investigation into the firm's conduct carried out by law firm Jones Day will take “at least several months” and will not be completed for the meeting.
That meant the company would not be ready to provide “well-founded” answers to shareholders' questions.
Manufacturing barely expands in September
American manufacturers expanded at their slowest pace in two years last month, held back by faltering global growth and cutbacks in oil and gas drilling.
The Institute for Supply Management said Thursday that its index of factory activity fell sharply to 50.2 in September from 51.1 in August. That is the lowest level since May 2013. Any reading above 50 indicates expansion.
Domestic manufacturers are getting hit by slower growth in China, the world's second-largest economy, and a stronger dollar, which makes their goods pricier overseas.
Airline, unions agree to tentative wage deal
American Airlines and a union have reached a tentative agreement offering higher wages for about 14,500 customer service and gate agents. Fort Worth-based American and the Communications Workers of America and the International Brotherhood of Teamsters announced the deal in separate statements Wednesday.
Terms have not been released, pending ratification by union members. No voting deadline has been announced.
American's statement said the agreement will mean significant pay raises for workers, while preserving jobs and facilitating growth.
— Staff and wire reports
