Hexion wins out in bid for Huntsman

Basell turns down bidding war

By Dave Hannon -- Purchasing, 7/13/2007 12:02:00 PM

Chemicals firm Huntsman Corp. has agreed to accept the latest offer from Hexion Specialty Chemicals and its parent, Apollo Management, a $6.6 billion offer that outbid Dutch firm Basell.

After originally offering $6.3 billion to buy Huntsman Corp., Apollo’s Hexion came back to the table earlier this week with the latest offer in an attempt to cut off a counter-offer from Basell, which had originally offered $5.6 billion for Huntsman in late June.
According to the Houston Chronicle, late Wednesday night Basell said it was standing by its initial bid. Basell is entitled to a $200 million break-up fee as a result.

The combination of Huntsman and Hexion will create one of the world's largest specialty chemical makers with annual sales exceeding $14 billion, 21,000 employees and 180 facilities, New York-based Apollo said.

Huntsman is the second-largest producer of methylene diphenyl diisocyanate, or MDI, used in polyurethane products such as foam insulation, coatings and adhesives. It makes textile dyes and titanium dioxide, a white pigment.

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