Axiall Asks Westlake for Revised Offer
A proxy fight between US vinyls producer Westlake and rival Axiall, a vinyl building products company, may be averted following Axiall’s stated desire to consider another offer. Axiall’s chief financial officer, Gregory Thompson, advised Westlake on May 20 that it had reopened its books and was seeking a revised offer by Jun. 3.
Westlake has confirmed its intent to submit a new proposal, or reaffirm its current proposal, on that date. Westlake has bid twice this year for Axiall, which has rejected both attempts as failing to recognize the $270 million in synergies that the combined entity would bring.
The first bid in January valued Axiall at $2.9 billion, or $20 per share, and was revised in March to $3.1 billion, or $23.35 per share. The price includes $1.5 billion of assumed debt.
Discussions became increasingly hostile, with Westlake proposing in April to replace Axiall’s board of directors before its annual shareholder meeting on Jun. 17. Westlake said it would continue to proceed with its current proxy contest to replace the board in light of the uncertainty surrounding Axiall’s strategic alternatives review process which may not conclude before the June meeting.
