FINANCIAL TIMES: BASF steps up share buy-back plans: “…the planned disposal of Basell, its 50:50 plastics joint venture with Royal Dutch/ Shell. This is expected to bring BASF and Shell about €1bn each.” (ShellNews.net) 20 April 05

By Bettina Wassener

Published: April 20 2005

BASF, the German chemicals group, stepped up its share buy-back programme with plans to repurchase a further €1.5bn ($1.9bn) this year.

The move underscores BASF's financial strength, which is down mainly to efficient manufacturing, the upturn in the chemicals cycle and the group's traditional caution regarding large-scale acquisitions.

Added financial flexibility comes from the end of large investment projects and the planned disposal of Basell, its 50:50 plastics joint venture with Royal Dutch/ Shell. This is expected to bring BASF and Shell about €1bn each.

BASF's financial situation has led some analysts increasingly to call for the group to return cash to shareholders via buy-backs. Last October, BASF doubled its 2004 programme to 1bn, taking the total bought back since the start of 1999 to €4.25bn, or 102m shares. Bettina Wassener, Frankfurt

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