Buyout talks between Huntsman Corp. and potential suitors like Lyondell Chemicals and Bassell have cooled, according to news reports. In early February Huntsman terminated talks because "none of the proposals were in the best interests of the shareholders." Potential buyers were not officially revealed, but a Reuters report identified Lyondell, Bassell and Hexion Specialty Chemicals.

BASF confirmed it has made a formal offer for Degussa's construction chemicals business, sources told German news agencies. Degussa will start negotiations to sell its construction chemicals operations and if talks with BASF fail, the unit will be sold in an auction, according to news reports.

BASF extended until March 3 its unsolicited $4.9 billion bid to buy specialty chemicals firm Engelhard. The initial deadline had been Feb. 6 but after the U.S. Federal Trade Commission signed off on the deal, BASF extended it to March 3. Engelhard's board previously rejected an offer. "There's still a big question mark over whether this acquisition will happen or not," said Dennis Nacken of Helaba Trust in Frankfurt in a report.

Dow Chemical reported average price increases of 10% in 2005 fueled by strong demand. Its plastics business grew 12% on a 2% increase on volume. Core chemicals saw an 8% price increase.

Nova Chemicals reported its ethylene prices were up 37% and polyethylene prices were up 34% in the fourth quarter. The company said its October 1 polyethylene increase of 5¢/lb was successfully implemented, as was its November 1 increase of 8¢. The November 15 increase of 7¢ was reduced to 5¢ and then delayed.