Apollo raises bid for Huntsman to $6.5 billion

09 July 2007

Citing sources familiar with the negotiations The Wall Street Journal reported today that New York-based private-equity firm Apollo Management had raised its takeover offer price for chemical products manufacturer Huntsman Corp. by $0.75 per share to $28 per share. The new offer values Huntsman at around $6.5 billion, excluding debt.

On Wednesday, Columbus, Ohio-based resin producer Hexion Specialty Chemicals, Inc unveiled a cash offer to acquire Huntsman for $27.25 per share, totaling $10.4 billion, including refinanced debt. (See: Hexion''s $ 10.8-billion offer outbids Basell for Huntsman acquisition)

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

The report says that the raised offer is a move against Dutch chemical maker Bassell Holdings, which has an existing $25.25 per share deal for Huntsman. On 26 June Basell, controlled by US industrial group Access Industries, revealed its definitive agreement to acquire Huntsman in a cash deal valued at about $9.6 billion, including the assumption of debt.

Based on Huntsman''s 221.9 million outstanding shares, the deal is worth about $5.6 billion, excluding debt.

The Wall Street Journal suggested that Bassell will now have until Wednesday to match Apollo''s offer, which plans to combine Huntsman with Hexion.