Hexion Extends Huntsman Buyout Offer
Monday April 7, 8:39 am ET
Hexion Extends Termination Date on Hunstman Deal to July to Give FTC More Time to Review
THE WOODLANDS, Texas (AP) -- Huntsman Corp. said Monday that Hexion Specialty Chemicals Inc. extended the termination date of its buyout offer by 90 days to gain U.S. regulatory approval.
The extension also means that Hexion will raise its offer of $28 per share by an annual rate of 8 percent, as of last Saturday.
Hexion, a division of Apollo Management LP, extended the termination date to July 4 from April 5 to give the Federal Trade Commission more time to review the $6.5 billion proposal.
When the buyout was announced in July, Huntsman President and Chief Executive Peter Huntsman acknowledged that a Huntsman-Hexion combination is likely to face antitrust scrutiny due to the overlap between the chemical businesses of the two companies.
Huntsman said Monday that the two parties continue to work with the FTC and regulatory agencies abroad to obtain approvals.
Huntsman first reported Hexion's plans to extend the termination date on Jan. 26. As part of the deal, Hexion said it would raise the offer by 8 percent a year if it did not close by April 6.
Before receiving Apollo's bid, Huntsman had previously accepted an offer of $5.6 billion, or $25.25 per share, from Dutch manufacturer Basell AF. Huntsman paid a $200 million breakup fee to cancel the Basell deal. Hexion agreed to reimburse half of the fee.
Source: Associated Press
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