Apollo Management trump Basell bid for Huntsman

It was reported in the Wall Street Journal today that the $5.6 bn offer ($25.25 a share) by Basell International Holdings (Access Industries) to acquire Huntsman (see earlier blog on the 26th June), had been trumped by the private-equity firm Apollo Management (Hexion Specialty Chemicals). The new offer was $6.34 bn or $27.25 per share.

The WSJ article further states, "Apollo's offer was made on behalf of one of its portfolio companies, Hexion Specialty Chemicals of Columbus, Ohio, which makes chemicals used in plywood. As a strategic purchaser, the move would also allow the combined company to cut substantial overlapping costs, in theory increasing its overall value." There is an anti-trust risk and the bid seems to have caught the stock-market by surprise after the Independence Day celebrations.

There are additional reports - Forbes, Private Equity Hub, C&EN and another Forbes article. A later FT report, states that Huintsman view the Apollo bid as superior.