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Huntsman receives merger proposal from Hexion for $27.25 per share

05
Jul '07
Huntsman Corporation announced that it has received from Hexion Specialty Chemicals Inc an entity owned by an affiliate of Apollo Management, L.P, a proposal to acquire all of the outstanding common stock of Huntsman for $27.25 per share in cash.

The Hexion Proposal is subject to termination of Huntsman's previously announced merger agreement with Basell AF and the execution of a definitive merger agreement with Hexion.

The Hexion Proposal's terms include that Hexion will have up to 12 months, subject to a 90 day extension in the judgment of the Huntsman Board of Directors under certain circumstances, to close the transaction and that the cash price per share to be paid by Hexion will increase at the rate of 8% per annum beginning nine months after a definitive merger agreement is executed.

The required financing for the Hexion Proposal is fully committed. Furthermore, the proposal does not include a financing condition.

The Hexion Proposal also includes a $325 million reverse break-up fee payable by Hexion to the Company in the event the transaction does not close due to the failure to obtain regulatory clearance or requisite financing.

The Hexion Proposal provides for a $225 million termination fee payable by Huntsman in the event of certain terminations by Huntsman in connection with the exercise by the Board of Directors or the Transaction Committee thereof of its fiduciary duties.

As announced on June 26, 2007, Huntsman entered into the Basell Agreement, pursuant to which Basell agreed to acquire all of the outstanding common stock of Huntsman for $25.25 per share in cash.


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