Hercules shareholders back merger with Ashland

05 November 2008 17:23  [Source: ICIS news]

TORONTO (ICIS news)--The shareholders of US specialty chemicals producer Hercules voted on Wednesday in favour of the company’s planned merger with rival Ashland.


“The merger agreement was adopted by holders of more than two thirds of Hercules' outstanding common stock, as required by Hercules' certificate of incorporation and the merger agreement,” Hercules said.


Under the merger, Hercules' shareholders would receive $18.60 (€14.32) in cash and 0.0930 of a share of Ashland common stock for each Hercules common stock, it said.


The companies expected to close the merger on 13 November, Hercules said.


Ashland said last month it remained committed to the $2.6bn cash-and-stock deal despite sharp declines in its profits and the current economic climate.


Hercules' share price rose 7.3% to $18.08 while Ashland's shares were down 3.9% to $22.79 in Wednesday morning trading on the New York Stock Exchange.


($1 = €0.77)


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By: Stefan Baumgarten
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