Huntsman Ends Discussions on Sale of Company

Feb 15, 2006 | Contact Author | By: Laurie DiBerardino
Contact the Author
Save
This item has been saved to your library.
View My Library
(click to close)
Save to My Library
Title: Huntsman Ends Discussions on Sale of Company
  • Article

After careful review of the proposals received, the board of directors and its special committee has concluded that none of the proposals were in the best interests of the shareholders.  

 

Jon M. Huntsman, founder and Huntsman chairman, said: “While the last proposals were above the price of our IPO last year I believe they were not adequate, particularly in light of the risks, uncertainties and extended timing of the proposed transactions.”

 

President and CEO Peter Huntsman commented, “Like other companies located on the Gulf Coast, our fourth quarter 2005 results were negatively impacted by hurricanes Rita and Katrina and the unprecedented spikes in energy prices leading up to and during that period. The company estimates that hurricanes Rita and Katrina had a direct negative impact of approximately $140 million on fourth quarter EBITDA or approximately $0.60 per share.”

 

The Company expects to release fourth quarter 2005 results on Feb. 24 and will hold a conference call to discuss these results on the same day.

 

Early last week, Huntsman officials confirmed that they spoke with numerous parties interested in the purchase of the commodity chemicals maker.

 

Shares of Huntsman rose 11% to $21.62 on Jan. 31 following reports of a potential sale. Huntsman first offered shares to the public a year ago at $23 a share.