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UNION CARBIDE COMPLETES SALE OF ORGANOSILICON BUSINESS TO DLJ MERCHANT BANKING PARTNERS FOR $300 MILLION

 DANBURY, Conn., July 9 /PRNewswire/ -- Union Carbide Corporation (NYSE: UK) today announced it has completed the sale of its OrganoSilicon Products, Systems and Services (OSi) business to DLJ Merchant Banking Partners L.P. and affiliates of the New York investment banking firm of Donaldson, Lufkin & Jenrette, Inc. The $300 million price consists of $220 million in cash plus $80 million of preferred stock, which is convertible into 30 percent of the voting common stock in the new silicones company. With this transaction, Union Carbide has essentially concluded its asset sales program announced in December 1991 that was intended to reduce debt, improve debt to capitalization and improve interest coverage.
 The sale will result in an after-tax gain for Union Carbide in the third quarter of 1993 of approximately $32 million, or $0.21 per common share. The corporation noted, however, that the impact of this gain could largely be offset by possible restructuring charges related to petrochemical operations in eastern Canada. The amount of such restructuring charges, if any, is subject to the outcome of negotiations and cannot be determined at this time.
 Union Carbide Corporation is a worldwide, basic chemicals company with advanced process technologies and large-scale chemical production facilities. Union Carbide had sales of nearly $5 billion in 1992.
 -0- 7/9/93
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK)


CO: Union Carbide Corporation ST: Connecticut IN: CHM SU:

TS -- NY066 -- 0017 07/09/93 15:22 EDT
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Publication:PR Newswire
Date:Jul 9, 1993
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