Hexion''s $ 10.8-billion offer outbids Basell for Huntsman acquisition

06 July 2007

Mumbai: Hexion Specialty Chemicals Inc. has offered to acquire chemicals maker Huntsman Corporation for $10.8 billion, trumping the $9.6 billion offer made by Basell Holding BV last week.

Hexion is a portfolio company of New York-based private equity firm Apollo Management LP, while Russian billionaire Len Blavatnik owns Basell.

The cash offer values Huntsman at $27.25 per share cash, compared with the $25.25 per share offered June 26 by the Netherlands-based Basell, Huntsman and Hexion said in separate statements.

Hexion would pay an additional eight per cent if the deal is not closed within nine months of a definitive agreement.

Salt Lake City-based Huntsman said while its board has concluded that the Hexion proposal is "superior" it was not certain an agreement would be reached.