LONDON – U.S. chemicals group Huntsman Corp. said it received a $6.1 billion takeover offer from private-equity firm Apollo Management, trumping a previously agreed deal with Dutch group Basell.
Hexion Specialty Chemicals
, a division of Apollo, has offered $27.25 a share in cash for Huntsman, an 8% premium over Basell’s offer.
Huntsman makes soldermasks and other electronics materials.
Huntsman agreed to the deal with Basell in June after the Dutch group failed in its attempt to acquire General Electric's
The deal with Basell can be terminated; Huntsman said its transaction committee is evaluating the terms of Hexion's offer. If the deal with Basell is terminated, the Dutch group will be entitled to a $200 million breakup fee. Hexion has agreed to directly fund $100 million of this fee if its proposed deal goes ahead.
Under the latest proposal, Huntsman would receive a $325 million fee if Hexion failed to get regulatory approval or secure financing for the deal, while the U.S. chemicals group would have to pay a $225 million fee to Hexion if it terminated the deal.