UpdateHuntsman accepts Hexion $10.6bn bid

12 July 2007 15:33  [Source: ICIS news]

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HOUSTON (ICIS news)--US Huntsman's board of directors has accepted Hexion's $10.6bn (€7.7bn) bid to acquire the company, it said on Thursday.

Hexion's offer comes to $28/share.

In accepting the bid, Huntsman will cancel its merger agreement with Basell.

Huntsman and Hexion will split the $200m penalty fee connected to cancelling the agreement.

Basell had offered to acquire Huntsman for $9.6bn on 26 June. Basell's bid came to $25.25/share.

Huntsman's merger still needs approval from regulators in the US and Europe.

The merger also needs approval from Huntsman's shareholders.

However, MatlinPatterson, the Huntsman family and a Huntsman charitable trust have agreed to approve the transaction, and those groups own 57% of the company's shares.

"This is a very favorable outcome for our shareholders and one that reflects a confidence in our Company of which our associates can be very proud," Huntsman CEO Peter Huntsman said in a statement.

"Hexion is an attractive candidate for a merger with Huntsman. We have complementary businesses and, together, will have an even stronger technology platform from which to serve our customers."

Huntsman's financial advisers were Merrill Lynch and Cowen and Company. Its legal advisers were Vinson & Elkins P and Shearman and Sterling.

($1 = €0.73)

By: Al Greenwood
+1 713 525 2645

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