Huntsman and Clariant Halt Chemicals Merger, Citing Investor Revolt
- 7 years ago
Huntsman and Clariant Halt Chemicals Merger, Citing Investor Revolt
“Given the continued accumulation of shares by activist investor White Tale Holdings and their opposition to the transaction, now supported by some other shareholders, we believe
that there is simply too much uncertainty as to whether Clariant will be able to secure the two-thirds shareholder approval that is required to approve the transaction under Swiss law,” Peter R. Huntsman, the Huntsman chief executive, and Hariolf Kottmann, the Clariant chief executive, said in a news release.
Clariant said on Friday that White Tale, an investment vehicle formed by the hedge fund manager Keith Meister
and the investment fund 40 North, had accumulated more than 20 percent of the Swiss company’s shares.
On Friday, Huntsman and Clariant said they remained convinced
that the proposed deal was “in the long-term best interests of all of our shareholders” but opted to avoid the continued costs and disruption in trying to push the deal forward.
LONDON — Two of the world’s leading chemical manufacturers, the Huntsman Corporation
and Clariant of Switzerland, terminated a planned multibillion-dollar merger on Friday, bowing to pressure from activist investors who opposed the deal.
The proposed all-stock transaction, called a “merger of equals” by Clariant
and Huntsman in May, would have been the latest consolidation in the chemicals industry and created a business with a combined market value of about $15 billion.
“Given the continued accumulation of shares by activist investor White Tale Holdings and their opposition to the transaction, now supported by some other shareholders, we believe
that there is simply too much uncertainty as to whether Clariant will be able to secure the two-thirds shareholder approval that is required to approve the transaction under Swiss law,” Peter R. Huntsman, the Huntsman chief executive, and Hariolf Kottmann, the Clariant chief executive, said in a news release.
Clariant said on Friday that White Tale, an investment vehicle formed by the hedge fund manager Keith Meister
and the investment fund 40 North, had accumulated more than 20 percent of the Swiss company’s shares.
On Friday, Huntsman and Clariant said they remained convinced
that the proposed deal was “in the long-term best interests of all of our shareholders” but opted to avoid the continued costs and disruption in trying to push the deal forward.
LONDON — Two of the world’s leading chemical manufacturers, the Huntsman Corporation
and Clariant of Switzerland, terminated a planned multibillion-dollar merger on Friday, bowing to pressure from activist investors who opposed the deal.
The proposed all-stock transaction, called a “merger of equals” by Clariant
and Huntsman in May, would have been the latest consolidation in the chemicals industry and created a business with a combined market value of about $15 billion.