12 July 2007 04:44 [Source: ICIS news]
SINGAPORE (ICIS news)--European polyolefins producer Basell late on Wednesday backed away from a bidding war with Hexion Specialty Chemicals, and reaffirmed its $25.25 a share offer for Huntsman.
Its merger agreement “valued Huntsman at a full and fair price, and offered certainty and the ability to close rapidly”, said Basell, adding that the majority shareholders of Huntsman signed a voting agreement with Basell in support of the merger agreement.
The company said in a statement that it has since been notified by Huntsman that the offer by Hexion is “superior” to Basell’s existing merger agreement.
However, “Hexion offer faces a lengthy and complex regulatory approval process and…closing the Hexion transaction will require many months and is subject to uncertainty,” said Basell, adding it will monitor the situation.
Incidentally, a Huntsman shareholder has filed a lawsuit seeking to block Basell’s acquisition of Hunstman.
Huntsman announced on 26 June that it had agreed to be acquired for $25.25/share by Basell, the chemicals segment of Access Industries.
Under the terms of the agreement, Basell will be entitled to a $200m (€146m) payment if Huntsman terminated the merger agreement to accept the Hexion offer.
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