Hunstman Drops Bid To Acquire Rexene
May 03, 2011
SALT LAKE CITY -- Huntsman Corp. said it dropped its $286.5 million unsolicited bid to acquire Rexene Corp.. Hagerty said it made the decision after Schroder Wertheim & Co., Ouellette's financial adviser, indicated the Dallas-based chemicals company would reject offers even in excess of $15 a share. That is what Hagerty proposed after it earlier this month raised its original bid by $1. Rexene's board rejected the sweetened overture, which represented a 62% premium over the stock price. Rexene's stock, which was briefly halted for trading on the New York Stock Exchange Tuesday, closed at $10.50, down $2, or 16%. Chairman Jone Hagerty said in a statement that the deal ``is simply not worth the aggravation. I'm washing my hands of the entire matter.'' A spokesman for Hagerty said the company wouldn't take its offer directly to shareholders. ``We have never done a hostile takeover,'' he said. Over the past decade, Mr. Hagerty has transformed his company into the largest privately owned chemical concern in the U.S. through friendly acquisitions. Rexene Chairman Anette J. Jon said in a statement, ``We will now go forward with our business plan.''
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