UPDATE 1-Chemtura to consider strategic alternatives

(Updates with stock price, background)

NEW YORK, Dec 18 (Reuters) - Specialty chemicals maker Chemtura Corp (CEM.N: Quote, Profile, Research, Stock Buzz) said on Tuesday it is considering a range of strategic alternatives, including acquisitions or a possible sale.

Strategic alternatives to be considered may include select business divestitures, value-creating acquisitions, changes to the company's capital structure, or a possible sale, merger or other business combination involving the entire company, Chemtura said.

The company has set up a special committee of independent directors to oversee the process. To assist in this process, Chemtura has retained the services of Merrill Lynch & Co (MER.N: Quote, Profile, Research, Stock Buzz), which is acting as its exclusive financial advisor.

The Middlebury, Connecticut company, with a $2.3 billion market capitalization, makes specialty chemicals for the agriculture, pool, construction and packaging industries.

Chemtura put itself up for sale earlier this year, according to sources involved in the process, but the Merrill Lynch-run process fizzled. Sources said the auction was for the entire operation.

Chemtura's stock closed on the New York Stock Exchange on Tuesday down 6 cents at $7.12. (Editing by Carol Bishopric)