Huntsman Corp. (The Woodlands, Texas) announced on Jan. 26 that it has received notice from Hexion Specialty Chemicals Inc. (Carpentersville, Ill.) that Hexion will exercise its right under its merger agreement with Huntsman and extend the termination date of the agreement by 90 days from April 5 to July 4, 2008. The two companies had agreed to the merger in July 2007 (see story)
Huntsman and Hexion had previously announced on Oct. 4, 2007, that each had received a request for additional information (commonly known as a second request) from the Federal Trade Commission (FTC) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Huntsman and Hexion have agreed with the FTC to allow the FTC additional time to review the merger, such that the merger is not expected to close before May 3, 2008. Huntsman and Hexion also continue to work closely with regulatory agencies in other jurisdictions, including the European Union.
Peter Huntsman, president and CEO, noted, "This extension was clearly contemplated by the terms of the merger agreement that we entered into with Hexion last July. We continue to work diligently with Hexion and its advisors to secure the regulatory approvals that are necessary to close the transaction.â€
Under the terms of the agreement, the $28.00 per common share cash price to be paid by Hexion upon any completion of the merger that occurs after April 5, 2008 will be increased at the rate of 8 percent per annum (inclusive of any dividends paid) beginning on April 5, 2008.