Clariant and Hunstman's planned merger under attack by shareholders

Clariant and Hunstman's planned merger under attack by shareholders”

In a filing with Swiss regulators, 40 North Latitude Master Fund Ltd., controlled by USA investors David Winter and David Millstone, and Corvex Master Fund Ltd, controlled by investor Keith Meister, disclosed that their stake in Clariant exceeded 5% of voting rights. The stake is held through a company called White Tale Holdings, now Clariant's largest single shareholder, they said.

- Clariant and Huntsman said on May 22 they had agreed to merge in a transaction that would give the Swiss company 52 percent of the enlarged group, and create annual cost savings of more than $400 million.

Corvex, the hedge fund run by activist investor Keith Meister, has thrown a wrench into the planned $20 billion merger of plastics and rubber products maker Huntsman (hun) with Swiss-based Clariant (clzny). But the activist investors in question have argued the deal represents a poor piece of business: "The proposed merger has no strategic rationale and is in fact a complete reversal of the company's longstanding strategy of becoming a pure-play specialty chemicals company". Activist investors, which traditionally focus on the USA, have been drawn by surging equity markets in Europe and a stronger economic backdrop.

- Two activist investors announced on July 4 they had taken a stake in Swiss chemicals maker Clariant to frustrate its merger with US peer Huntsman. "We are taking all of our shareholders' interests seriously and maintain our long-practiced open and engaging attitude with them". The move by the United States investors makes a counterbid scenario "more likely".

The Clariant-Huntsman deal extended a record run of consolidation in the global chemicals industry including Dow Chemical Co.'s merger with DuPont Co. and China National Chemical Corp.'s takeover of Syngenta AG of Switzerland. "Clariant will be exchanging nearly half its shares for what is primarily a commodity and intermediates business which will further dilute its multiple and create a larger conglomerate discount". The deal was met with a lukewarm response from shareholders as the Swiss company, which had always been cited as a takeover target itself, had attracted investors betting on a buyout.

Like this



04 July 2017
Stifel Financial Corp Acquires 3152 Shares of Cheniere Energy Partners LP (CQP)
Cheniere Energy, Inc (Cheniere) is an energy company primarily engaged in liquefied natural gas (LNG)-related businesses. Cheniere Energy comprises 12.1% of Baupost Group LLC MA's investment portfolio, making the stock its largest position.

04 July 2017
Chicago Bridge & Iron Company NV (CBI) PT Raised to $14.00
The construction business posted $0.24 Earnings per share for the period, falling below Zacks' average forecast of $0.95 by $0.71. Additionally Chicago Bridge & Iron Company N announced a dividend for shareholders that was paid on Friday the 30th of June 2017.

04 July 2017
Mike Moustakas in Home Run Derby has Royals fans pumped up
Moustakas has 22 home runs this year, tied for the most by a Royals player before the All-Star break. It will take place down in Miami at Marlins Park with the rest of the MLB All Star festivities.

04 July 2017
Etisalat's board has been dissolved, new chairman appointed
Nnanna is now in charge of Financial System Stability at the CBN and also heads the Economic Policy Directorate of the apex bank. As part of the transition programme, the firm is also expected to announce a new management team.

04 July 2017
Imagination Technologies shares rise on strong results, despite Apple dispute
In May, the company said it had started dispute resolution proceedings with Apple over issues relating to intellectual property. Over the years Imagination has become so dependent on Apple that the move saw its shares fall by 70 per cent in a day.

04 July 2017
Hot Stock Overview: Banco Bradesco SA (BBD)
Finally, BidaskClub cut shares of Banco Bradesco SA from a buy rating to a hold rating in a research report on Friday, June 23rd. Fiera Capital Corp acquired a new position in Banco Bradesco SA during the fourth quarter valued at approximately $101,000.

04 July 2017
Jacob Zuma : S. Africa's President faces parliament vote on Aug 8
South Africa's parliamentary speaker says lawmakers will vote on a motion of no confidence in President Jacob Zuma on August 8. The no-confidence vote was initially scheduled for April but delayed to allow the court to rule.

04 July 2017
Washington Trust Bank Has $4.20 Million Stake in Exxon Mobil Corporation (XOM)
The Coca-Cola Company (NYSE:KO) has a market cap of $191.54 billion and over the last 12 months, KO has declined by -1.06%. The California-based California Public Employees Retirement Sys has invested 0.01% in HealthSouth Corp (NYSE:HLS).

04 July 2017
Has $203000 Position in The Goodyear Tire & Rubber Company (NASDAQ:GT)
United Services Automobile Association has 0% invested in Gentex Corporation (NASDAQ:GNTX) for 26,660 shares. (NYSE:TSN). Oppenheimer & Company Inc decreased Ishares Tr (IDU) stake by 13,118 shares to 5,344 valued at $651,000 in 2016Q4.

04 July 2017
Green Lantern Corps: Rupert Wyatt linked with directing
Thanks to That Hashtag Show (via Omega Underground), a new rumor regarding Green Lantern Corps' direction has been released. The move to Wyatt, who walked away from the long-gestating Gambit film, represents a bold move for WB.