Issue Date: March 14, 2016
Westlake CEO makes case for Axiall
Westlake Chemical CEO Albert Chao has penned a letter to Axiall’s shareholders asking them to force Axiall management into talks about Westlake’s proposed $2.9 billion takeover. In January, Westlake made an unsolicited, $20.00-per-share cash-and-stock bid for the rival vinyls maker. Axiall rejected the offer, claiming it was undervalued, even though it was more than twice Axiall’s stock price at the time. In the letter, Chao said a majority of Axiall shareholders have told him they would like to see Westlake negotiate a deal. Chao also lashed out at Axiall’s divestment moves, such as the recently announced sales of plastics additives and vinyl products businesses. Axiall’s annual revenues from these businesses are about $200 million and yet it got only $41 million for them, he noted. “We remain confident that our proposal provides superior value to a stand-alone strategic plan,” Chao wrote.
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