NEW YORK — The nylon marriage between BASF Corp. and Allied Signal is off.
Only one week ago, J. Dieter Stein, president of BASF Corp., indicated at the company’s annual press conference here that plans to combine the textile and carpet nylon fiber operations of both companies into a joint venture were progressing well.
“We are hoping that in the second quarter, we will have a deal,” he said then, but added that it was “a fluid situation.”
A letter of intent for the venture was signed by the companies last October.
The companies gave no reason for killing the proposed deal. A BASF spokesman said that a rift occurred Tuesday, and that the decision to end the talks “was final.”
A brief statement issued by BASF Wednesday said: “BASF and Allied Signal have ended their talks to create a joint venture of their textile and carpet fibers businesses. “The companies said that their respective businesses were well positioned in their markets,” the statement continued, “but that they could not reach a final agreement on a mutually satisfactory way to integrate them in a joint venture.”
BASF and Allied Signal officials declined to comment further.