Boon for Huntsman charity

One of Utah's largest charitable organizations stands to receive $700 million — $100 million more than originally announced — under the latest deal to sell the Huntsman Corp. to Apollo Management LP.

The chemicals maker accepted Apollo's $6.5 billion buyout offer Thursday, terminating an earlier deal to sell itself at a lower price to a Dutch company.

The higher price means Huntsman shareholders, including the Huntsman Foundation, will get about $600 million more than they would have through the earlier deal, Huntsman President and Chief Executive Officer Peter R. Huntsman said.

"My parents' foundation would be getting probably 100-plus million more," Huntsman said Thursday afternoon in Salt Lake City, where Huntsman Corp. is based. The company operates from The Woodlands, Texas.

"I think it's going to be a magnificent legacy," he said. "What better thing for a company to do than to leave some sort of legacy of helping others?"

Huntsman Corp. founder and Chairman Jon M. Huntsman Sr. previously has said that at least 80 percent of the foundation's charitable giving will be within the state of Utah, with the majority going to fund research to fight cancer. The Huntsmans have also focused efforts on fighting homelessness and helping abused women and children and rewarding excellence in education.

Apollo, through its Hexion Specialty Chemicals Inc. unit, had offered $28 a share in cash for Huntsman, which previously had accepted a $25.25 a share offer from the Dutch manufacturer Basell AF. Huntsman gave Basell until Wednesday to raise its bid but said Basell failed to do so.

Huntsman's board approved the Apollo deal and has recommended that shareholders also vote in favor.

In an interview with the Associated Press, Peter Huntsman conceded a Huntsman-Hexion combination will have a harder and longer time gaining antitrust approvals in the U.S. and Europe because of the overlap between the two chemical businesses.

"There are areas of overlap in the business, but we're confident we'll get through the Federal Trade Commission," he said.

To compensate for delays, Hexion agreed to pay an 8 percent annual premium for Huntsman shares if the closing takes longer than nine months, he said.

Peter Huntsman told the Deseret Morning News that he has been asked to work with the Apollo group, though he's not sure in what capacity. "They've expressed a desire to continue doing what I'm doing here. We'll take that one step at a time."