UPDATE: Huntsman's share price soars 13%

05 July 2007 19:14  [Source: ICIS news]

(Updates share price in paragraph 1; adds analysts' reaction and comment in paragraphs 4 and 5).

 

TORONTO (ICIS news)--The share price of US chemicals maker Huntsman was up 12.58%, at $27.47, in early Thursday afternoon trading in New York, only slightly down from the $27.55 the shares hit after trading opened in the morning.

 

Analysts had expected a gain after Huntsman on Tuesday received a $6bn rival takeover bid from private equity firm Apollo, topping an earlier bid by Access Industries.

 

Apollo offered to buy Huntsman for $27.25/share in cash, $2 (€1.46) higher than Access’ bid from June. On 25 June, the day before Access made its bid, Huntsman’s shares were priced at $18.9.

 

Standard & Poor's (S&P) on Thursday pointed to the possibility of higher offers, either from Access or other bidders, and increased its 12-month target price for Huntsman's shares to $28, from $25.

 

Apollo's offer, which comes through its Hexion Specialty Chemicals unit, could face greater anti-trust issues than the Access offer, S&P said, but added: "We do not see them [the anti-trust issues] as challenging."

 

($1 = €0.73)

By: Stefan Baumgarten
+1 713 525 2653

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