Hexion Specialty Chemicals, owned by an affiliate of the private equity firm Apollo Management, has offered to buy Huntsman for $27.25 per share in cash, gazumping Basell’s offer of $25.25.
In a statement today, Huntsman said the Hexion bid is subject to the termination of the previously announced merger agreement with the polyolefins giant Basell and the execution of a definite merger agreement with Hexion.
If Huntsman goes with the Hexion offer, Basell will be entitled to a $200m payment. According to Huntsman’s statement, Hexion has offered to fund $100m of this payment, subject to reimbursement if the Huntsman/Hexion deal did not go through.
Huntsman, which had revenues in 2006 from all operations of over $13 billion, is in the process of considering the offer, and says it will take into account the views of the principal shareholders in the company.
Until a decision is reached on the Hexion offer, the Huntsman Board of Directors and Transaction Committee continue to recommend the proposed merger with Basell.
Hexion Specialty Chemicals, owned by an affiliate of the private equity firm Apollo Management, has offered to buy