Investor looks to scupper Clariant-Huntsman deal
20/09/2017
The investor, White Tale Holdings, now owns 15.1% of Clariant, making it the biggest shareholder in the Swiss company. It also submitted a letter to the Clariant board of directors expressing its opposition to the merged with Huntsman.
“Unfortunately, we remain convinced, and increasingly so, that the proposed merger is detrimental to Clariant shareholders,” it said in the letter.
“It both significantly destroys existing Clariant shareholder value and prevents Clariant from pursuing multiple alternative and immediate opportunities to unlock value for its shareholders.”
In response to the letter, Clariant released a detailed explanation of why it remains committed to completing the merger, saying that it is “the best value creating option for all stakeholders”.
Clariant rejected White Tale’s accusations that the proposed merger undervalues the company’s shares. It also said that the merger would not result in Clariant ceding operational control of its business.
White Tale’s letter suggested a potential alternative to the merger would be the sale of Clariant’s plastics and coatings unit, which makes up 43% of the group’s revenue. It was immediately rejected by Clariant, which said this move would be “value destructive” due to the unit’s significant cash contribution and cash coverage.
Huntsman chief executive Peter Huntsman described White Tale’s actions as an advancement of its “destructive, high-risk strategy of dismantling Clariant”.
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