Huntsman sued over Access buyout offer

Huntsman Corp., the sixth-largest U.S. chemical company, was sued by a shareholder who contends a $5.88 billion takeover bid by billionaire Len Blavatnik's Access Industries Holdings LLC undervalues the stock.

Huntsman said June 26 it would be acquired by Access's Basell Holdings BV chemical unit of the Netherlands for $25.25 per share in cash, a 34 percent premium at the time, and assumption of $3.7 billion in debt.

Apollo Management LP, a buyout firm run by Leon Black, made counter offers and Monday said its Hexion Specialty Chemicals division would pay $28 per share, or $6.54 billion, for Salt Lake-based Huntsman.

Huntsman directors "failed to conduct a sufficient process to investigate and obtain maximum value for the company's shares," stockholder Isaac Augenstein said in a Delaware Chancery Court complaint filed in Wilmington Monday.

Huntsman has been shedding commodity chemical assets to focus on specialty chemicals subject to fewer swings in costs for raw materials. Huntsman shares have risen about 49 percent since June 25, the session before the Access bid was announced.

In the complaint, the plaintiff asked a judge to stop the sale "until a proper process" is used to sell the company for the highest possible price.

Russ Stolle, a Huntsman spokesman, said the lawsuit is "without merit" and declined further comment.

Chief Executive Officer Peter Huntsman said last month the firm "worked with multiple companies" for the good of shareholders, and "there was a real process" in dealing with potential buyers.

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Contributing: Jack Kaskey