Shares in Axiall Corp rocketed on the news that it has received and rejected a takeover approach from Westlake Chemical Corp (NYSE:WLK).
Shares in Axiall Corp (NYSE:AXLL) rocketed on the news that it has received and rejected a takeover approach from Westlake Chemical Corp (NYSE:WLK).
Westlake has made a US$20 per share offer, made up of part cash and part shares.
The deal is at a substantial premium to Axiall’s closing price last night of under US$10 per share, and shares have jumped 85% to US$18.15 on the news.
But Axiall has rejected the offer, and Albert Chao, CEO of Westlake, said he was “surprised” and “disappointed” by the rejection.
The deal, he added, “provides Axiall shareholders with a significant premium and upside potential via their participation in the increased scale and synergies of the combined company.”
“Instead, Axiall said it prefers to pursue a standalone strategic plan, but the market reaction to this plan does not suggest it will deliver anywhere near the value and upside of our proposal.”
Shares in Westlake dropped more than 5% to US$44.20.