ASHLAND OIL <ASH> SEEKS CHEMICAL ACQUISITIONS
Ashland Oil Inc is actively seeking a
chemical acquisition and is willing to spend between 100 to 200
mln dlrs, Chairman John Hall said.
    "We're looking for privately held companies or units of
other companies. We think it's too dificult to go (shopping) on
the stock market where premiums are so high," Hall told
Reuters. He was in Houston to address the annual meeting of the
American Institute of Chemical Engineers.
    "We're trying to grow in that area to cushion the oil price
volatility," Hall said.
    Hall said Ashland is seeking a chemical company acquisition
which would complement its existing chemical businesses which
manufacture adhesives, polyester resins and other products.
    When asked if Ashland is considering divesting its
money-losing oil exploration and production unit, he said "we
do not have any spin-offs planned at this time."
    Hall said the Ashland, Ky., based oil company would have
strong margins on its chemical products throughout 1987, adding
"right now we're struggling a bid" with the company's refining
and marketing margins.
    The Ashland chairman also said he hoped the U.S. government
would consider some form of tax incentive to help develop
costly synthetic fuels such as oil shales and coal
liquification. "The lead time on that (kind of project) is so
long, it's difficult for a private company or a company with
shareholders to pay for reseach," he explained.
 Reuter
