Urethane Kills Merger

Urethane Technologies Inc. said Wednesday it has called off its plans to merge with the IPI division of Sun Valley-based PMC Inc. because Urethane’s stock has been subject to a “relentless battering” since the transaction was announced.

Urethane’s stock, which was trading at $1.06 per share when the merger was announced Sept. 24, closed Wednesday at 53 cents a share in Nasdaq trading.

A Urethane statement said the company is “at a loss to understand the savage attack” on the stock. Under the proposed merger, PMC was to have received enough Urethane stock to have a 45% stake in the combined company.

“The change in Urethane Technologies’ market price means that the deal as structured could not go forward. We continue to believe that a combined company offered both companies the greatest potential for growth and success in the future,” Urethane added.