to, the target chemicals will include herbicides, fungicides, and insecticides. In the past 18 months, Monsanto has spent more than $400 million to expand its reach in agricultural biotechnologyacquiring stakes in Calgene, Ecogen, DeKalb Genetics, and all of Agracetus— fueling rumors, since proven true, that the company would split into a chemical company and a life sciences company (C&EN, Dec. 16, 1996, page 9). Holden's basic seed technology will be an important building block in Monsanto's agricultural biotechnology business, providing a delivery mechanism for getting genetically engineered plant traits into commercial seed products. "These acquisitions mean the latest technological advances will be made available to the greatest possible number of seed companies of all sizes with unparalleled speed," says Robert B. Shapiro, Monsanto chairman and chief executive officer. Monsanto's investments in seed marketers are designed to allow it to capitalize on the billions of dollars it has invested in plant biotechnology R&D over the past 20 years. Ann Thayer
Investors push for Rexene sale Two Wall Street investors are waging a battle to toss out the current board of directors of Dallas-based plastics and film maker Rexene. They want to install four new directors whose mission will be to sell Rexene for at least $16 per share or $300 million. The investors are miffed because they say Rexene's board failed to adequately explore at least three offers to purchase the company made last year by Salt Lake Citybased plastics maker Huntsman Corp. In July, Huntsman offered $14 per share (C&EN, Jury 29, 1996, page 6); it made another offer of $15 in August (C&EN, Aug. 12,1996, page 9); and it made a third offer of $16 late in October. The last offer represented a more than 70% premium over the $925-per-share price at which Rexene traded before Huntsman's first offer. The investors' proposed directors "have no experience in managing a specialized polymer company like Rexene," warns Rexene's chairman and chief executive officer, Andrew J. Smith, in a letter to shareholders. If they secure control of Rexene and cannot sell the company at $16 per share, the proposed
directors would be "forced to manage the company, or sell the company at an unacceptably low price," he says. However, in reaction to the two investors' call for the sale of the company, Rexene management now says it would consider selling the company for $16 per share, if it could close a deal within 60 days. At press time, Rexene, which has annual sales of more than $600 million, traded at $ 14 per share on the New York Stock Exchange. The investors, Wyser-Pratte Management and Spear, Leads & Kellogg, both of New York City, together own about 10% of Rexene's shares. They have just mailed a solicitation statement asking shareholders to approve a special meeting of shareholders. If a majority approves the request, the investors—who plan to ask Smith to remain as a fifth director and CEO—hope that the shareholders will replace the current board with their nominees. Those nominees are Jonathan R Macey, a professor at Cornell Law School; Robert C. Mauch, former president and CEO of propane distributor AmeriGas; Lawrence C. McQuade, former executive vice president of W.R. Grace; and James S. Pasman Jr., former chairman and CEO of KaiserTech, an aluminum and chemical concern. Of the current imbroglio, a spokesman for Huntsman says, "We are aware of the proxy battle, but we have nothing to do with it." The spokesman added that under advice of counsel, he could make no comment about Huntsman's interest in acquiring Rexene. If Huntsman is still interested in acquiring Rexene, it may not want to re-create the hostile atmosphere that existed between the two companies last year. Marc Reisch
Methylene chloride exposure sharply limited The Occupational Safety & Health Administration has issued a final standard limiting worker exposure to methylene chloride. The new eight-hour time-weighted permissible exposure limit (PEL) is 25 ppm. The previous PEL was 500 ppm. According according to OSHA, about 238,000 workers in more than 92,000 establishments are exposed to methylene chloride every year. The compound is used for paint stripping and in aerosols, plastics manufacture, metal-degreasing operations, urethane foam production, and pharmaceuticals. It is not flammable and does not contribute significantly either to
air pollution or depletion of stratospheric ozone. OSHA has set the new standard low because of indications that methylene chloride is carcinogenic. Laboratory animal studies show that it can cause cancers in rats and mice, and some epidemiologic data indicate it may cause cancer in exposed workers. Based on OSHA's risk assessment from these data, the agency estimates that exposure at 25 ppm will result in 3.6 excess cancer deaths per 1,000 workers exposed to the chemical. These risks are vigorously denied by the Halogenated Solvents Industry Alliance (HSIA), a Washington, D.C.-based trade group that represents manufacturers and users of methylene chloride. OSHA's review of the toxicity of methylene chloride "likely will be inconsistent with the outcome of an ongoing recharacterization of the solvent by the Environmental Protection Agency and other federal agencies," predicts HSIA Executive Director Peter E. Voytek. He believes this ongoing federal review will show that it is safe to use the chemical at the industry-recommended exposure level of 50 ppm. OSHA disagrees. Adam M. Finkel, director of OSHA's health standards programs, says industry is incorrect in believing OSHA has not considered the animal and epidemiologic data properly. "OSHA has considered the metabolic differences between mice and humans and did consider the data submitted to us by HSIA," Finkel says. Those data did not convince the agency to set the PEL at 50 ppm. HSIA is also concerned that it will be impossible for small businesses to meet the new, tougher standard. "For many smaller users, if OSHA sticks with the 25 ppm, they will go out of business," according to Voytek. OSHA believes its standard is both technologically and economically feasible. Compliance costs are estimated to be $101 million annually, or about $424 per exposed worker. Firms that substitute other chemicals for methylene chloride could avoid compliance costs entirely, OSHA points out. At press time, the methylene chloride standard had not yet been published in the Federal Register, but it will go into effect 90 days after publication. It includes requirements for exposure monitoring, medical surveillance, and respiratory protection. Small businesses get a few breaks on some compliance deadlines and medical tests, but will have to meet the same exposure limit as all other affected operations. Dave Hanson JANUARY 13, 1997 C&EN 7
