Hexion Specialty Chemicals Inc has confirmed its intention to proceed with the acquisition on Huntsman Corporation, which has been delayed by a competition investigation by the US authorities.
Hexion has exercised its right to extend the termination date under the merger agreement by 90 days, up to July 4, 2008. Huntsman had announced on January 26, that it had received notice of Hexion’s intention to extend the merger agreement, in connection with the parties’ agreement with the Federal Trade Commission (FTC”), to allow the FTC additional time to review the proposed merger.
Huntsman and Hexion are also working with regulatory agencies in other jurisdictions, including the European Union, to obtain the required approvals.
Under the terms of the merger agreement, the $28-per-common-share cash price to be paid by Hexion on completion of the merger will be increased at the rate of 8% a year, beginning on April 5, 2008, after deduction of any dividends declared or paid on or after April 5. |
