UK firm, BOC, the world“s second-largest industrial gas maker, is expected to announce wide-ranging disposals within the next month, to combat potential bid approaches and drive up its share price.
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UK firm, BOC, the world“s second-largest industrial gas maker, is expected to announce wide-ranging disposals within the next month, to combat potential bid approaches and drive up its share price. Tony Isaac, chief executive, is under pressure to lift the share price, currently 9.60, to 14.60 – close to the price offered last year by a Franco-American bid. The twelve month hiatus, preventing both Air Liquide of France and America“s Air Products and Chemicals, from renewing their approach, ends in the next four weeks. This weekend, neither company said it intended to find a way around the concerns of the American Federal Trade Commission, which vetoed BOC“s acquisition and break-up. Isaac“s immediate concern, however, is to prove to shareholders that the company has a future as an independent entity, and that he can add value. This has started with a review, over the past three months, of lower performing assets, thought to include BOC“s Japanese business. The disposals, which will strengthen the balance sheet and focus the company“s energies, are expected by the end of April. In an exclusive Sunday Times interview, Isaac says he is looking at a range of key initiatives. “These include growth and cost initiatives,” he says. “We are really looking at all our lower-performing assets, either to improve or dispose of some of them, but it is not finalized yet. We are examining our entire portfolio of assets, working out the ones that can be improved internally and the ones we believe are more sensible to sell or rationalize. We have about another month of work still to do.”