New From PetroChem Wire . . . .
PetroChem Wire and Genscape have partnered to create NGLs Week, a comprehensive summary of price trends, upstream and downstream costs, operations news and supply/demand forecasts. The report contains everything you'll need to understand what's happening in the NGL markets.
For more information,
UPDATE: Westlake ups asking price for Axiall, rejected by board of directors
HOUSTON, April 4, 2016 (PCW) -– Westlake Chemical on Monday said it had upped its asking price for Axiall Corporation to $3.1 billion from $2.9 billion, a move Axiall’s board of directors quickly rejected.
“The revised proposal was summarily rejected by Axiall's Board of Directors and Axiall refused to make a counterproposal or otherwise negotiate or provide any constructive feedback,” Westlake said.
As a result, Westlake on Monday file necessary paperwork with the Securities and Exchange Commission to elect an alternate slate of 10 new directors to Axiall’s board “who will ensure that all of Axiall's strategic options are considered fully,” Westlake said.
Westlake added in a letter to Axiall shareholders that the latter company, after rejecting the second offer, had demanded a "substantially increased proposal value," but offered no other details.
Axiall, however, shot back on Monday, saying although it had been engaged in weeks of discussions with Westlake it was not allowed to conduct due diligence on Westlake’ business, “which it would need given the substantial stock component to Westlake’s proposal.”
Axiall also responded to Westlake’s charges of delaying its annual shareholder meeting by saying the delay was done at Westlake’s advisors’ request.
“We remain willing to share information and have further discussions, but the value you currently propose simply ignores the high quality of our assets, the significant growth potential of our business and the powerful synergies available in a combination,” Axiall said.
In late January, Westlake offered to buy out Axiall for $2.9 billion, which the latter firm rejected, saying it would prefer to follow a “standalone strategic plan.”
Westlake then nominated 10 people as board members for Axiall with their introductions set to be made during Axiall’s annual meeting, a meeting Axiall has yet to set. -– Samantha Hartke