The Swiss company Ciba Speciality Chemicals said on June 26 that it would withdraw its listing on the New York Stock Exchange with effect from July 16. Ciba said in a statement that it would maintain its primary listing on the Swiss stock exchange, where most of its share trading takes place, including with US investors.
Ciba's Board of Directors approved the delisting of its American Depository Shares (ADS) to reduce complexity and costs, said Chief Executive and Chairman Armin Meyer.
"The United States continues to be a very important market an investor base for Ciba," Meyer said. "As most US investors are buying Ciba shares directly at the trading platforms of the Swiss stock exchange, however, only small volumes of Ciba ADSs are traded at the NYSE," he added.
Ciba said it would maintain American Depository Receipts for over-the-counter trading and continue to report under US accounting standards (GAAP). The Swiss company intends to file with the US Securities and Exchange Commission for delisting on July 6. It normally takes effect ten days later.
Ciba is the latest foreign company to forgo a US listing since corporate governance laws were tightened there following the collapse of the energy trading group Enron in 2001. The Swiss chemicals group more than doubled its first quarter 2007 net profit to 77 million Swiss francs (64 million dollars, 48 million euros). It expects full year sales and net income to be above 2006 levels.
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