Apollo trumps Access with $6bn Huntsman bid(3)

Russian billionaire Len Blavatnik’s Access Industrial Holding has seen its accepted bid for Huntsman Corporation trumped by US buyout firm Apollo Management.

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