US buyout firm Apollo Management has trumped businessman Len Blavatnik’s Access Industrial Holdings rival bid for partially-listed US chemical maker Huntsman Corporation, with an offer of around $6 billion.
Apollo’s portfolio company Hexion Specialty Chemicals has made a $27.25 a share offer, according to a statement by Huntsman. This is $2 more than Access’s accepted bid agreed on June 26.
Access, which wanted to merge Huntsman with plastic company Basell, will now receive a $200 million break fee, of which Apollo has agreed to pay $100 million.
Huntsman said in February it would consider a sale, because chairman Jon Huntsman was seeking funds for charitable work. It is the fifth largest chemical company in the US, with $10.6 billion sales last year.
Huntsman also has debts of $3.7 billion, which Access had agreed to take on. Media reports suggested the company would consider a counter offer.
Huntsman’s shares were trading at $24.40 yesterday before news of the Apollo offer surfaced, $2.85 below the buyout firm’s offer.
Yesterday media reports linked The Blackstone Group with a possible $400 million offer for Chinese petrochemical company China National Bluestar Group.
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