Argex Titanium Inc. ARGEF

RE: Very Interesting from Dupont

[morricone]

Dupont's chloride process gave them a manufacturing competitive advantage over other companies for decades. More recently they've made money by licensing the process out.

Argex's CTL process offers nothing for Dupont since it would now simply put them on a level playing field with other companies who would license the process. They'd have no control over anything and in this situation their best option might be to bail out of TiO2, selling off their business unit and taking the cash and investing it in other new technology areas where they can be a leader and make a lot more money. Dupont became a huge corporation by being dominant in certain areas of technology and manufacturing not by being a follower.

Yeah you're going to say that Dupont could buy Argex and control the process but I suspect they would know any effort to do so would trigger an ugly bidding war which they know they  might not win. And there's still uncertainty over how well the CTL process will really work so no takeover attempt by anyone at the moment is likely without more information.