Crown Cork & Seal sells stake in Constar

Crown Cork & Seal, the US-based packaging provider, has announced that it is to sell a stake in its wholly owned subsidiary, Constar International.

Crown Cork & Seal, the US-based packaging provider, has announced that it is to sell a stake in its wholly owned subsidiary, Constar International.

Crown is to sell all its common stock, and the remaining securities will be sold by Constar. Crown expects to repay a portion of its outstanding debts in the loss-making company with the proceeds and will continue to own a significant equity stake in Constar after the offering.

Salomon Smith Barney is acting as the sole manager of the common stock and securities.

A registration statement relating to the securities has been filed with the Securities and Exchange Commission but has not yet become effective.

Crown Cork & Seal is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania.