Clariant shares rise as activist investors seek to sink $20bn Huntsman merger

The Clariant-Huntsman deal was announced in May, and represents an all-share merger with an enterprise value of $20bn. The agreement has been described as a merger of equals, with Clariant shareholders set to own 52 percent of the combined company, while Huntsman shareholders would hold the remaining 48 percent.

In place of merging with Huntsman, the investors are pushing for Clariant to explore its strategic options: “Clariant will be exchanging almost half its shares for what is primarily a commodity and intermediates business, which will further dilute its multiple and create a larger conglomerate discount.”

In response to the investors’ actions, a Clariant statement read: “We have noticed the increased investment of Corvex [and] 40 North in Clariant and their demands… we are taking all of our shareholders’ interests seriously and maintain our long-practiced open and engaging attitude with them. In that spirit we are in contact with Corvex [and] 40 North.”