Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Montecatini Deal - Lehman Brothers Collection


Company Deal$10,000,000 5 1/2% sinking fund dollar debentures due 1979 and warrants for capital shares
Transaction TypeSinking Fund Dollar Debentures
Deal DescriptionMontecatini applied the net proceeds from this transaction to the construction in the United States of a plant for the manufacture of the new synthetic resin, isotactic polypropylene, and other petrochemicals. Isotactic polypropylene has exceptional physical and chemical characteristics, including its light weight, high melting point, high tensile strength, and resistance to chemicals. Uses for polypropylene include plastics, fibers and synthetic rubber. Isotactic polypropylene was patented by Montecatini in Italy and many other European countries and was, at the time, marketed in Italy under the trade name "Moplen." The plant that Montecatini proposed to construct in the United States was to be owned and operated by Novamont Corporation, a wholly owned subsidiary incorporated in Delaware. The plant was located near Charleston, West Virginia, on land that Novamont acquired.
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