Better Chemistry? Huntsman Dumps Basell for Apollo

The chemical products maker chooses a $10.6 billion deal with Apollo's Hexion unit over the announced $9.16-billion Basell agreement.
Roy HarrisJuly 12, 2007

Chemical products maker Huntsman Corp. scratched its $9.15-billion deal to be acquired by Basell NV, one of June’s largest announced mergers. Instead, Huntsman took a higher offer from Hexion Specialty Chemicals Inc., part of private-equity company Apollo Management L.P.

The agreement with Hexion, valued at $10.6 billion, including assumption of debt, is for $28 a share. The Basell agreement envisioned a $25.25-a-share price, which had been a 33.6-percent premium.

A statement from Huntsman said that the Hexion transaction “was deemed to be a superior proposal to the Basell Agreement and was unanimously approved by the Board of Directors of Huntsman,” after Huntsman’s independent directors recommended the move.

The statement said that entiries controlled by MatlinPatterson and the Huntsman family and a Huntsman charitable trust, collective owners of about 57 percent of the common shaes, have agreed to approve the Hexioin deal. Those entities had previously agreed to the deal with Basell, as well.