Courtesy of Benzinga.
Westlake Chemical Corporation (NYSE: WLK) announced on Tuesday that it plans on nominated a slate of 10 independent and highly qualified individuals to Axiall Corp (NYSE: AXLL)'s Board of Directors during its upcoming Annual Meeting in May.
Shares of Axiall spiked higher by more than 8 percent following Westlake Chemicals' announcement.
Westlake has previously offered to acquire Axiall in a deal that values shares at $20 per share. The offer was subsequently rejected despite the more than 100 percent premium to Axiall's closing price of $9.60 on January 22, 2016, the day before Westlake made the proposal.
Albert Chao, Westlake's President and Chief Executive Officer, said, "We have heard from many Axiall shareholders who have expressed their desire for Axiall to engage in discussions with us regarding our proposal. Given the clear shareholder support and the compelling nature of our proposal, we are disappointed that Axiall has been unwilling to engage with us. Our proposal, which represented a 108% premium to Axiall's closing price on the day before we submitted it, provides both certainty and upside potential through the combination of cash and an ownership interest in the combined company.
"Given Axiall's position, we believe that Axiall shareholders would be better served by our independent and highly qualified nominees, who are committed to acting in the best interests of all Axiall shareholders. Our nominees have the necessary track-record, strategic vision and experience to maximize shareholder value. We believe they will consider our proposal in an independent manner and in accordance with their fiduciary duties. The nominations give Axiall shareholders an opportunity to voice their disappointment with Axiall's refusal to engage in discussions with us regarding our proposal," Mr. Chao concluded.
Posted-In: Albert Chao Axiall Westlake ChemicalNews M&A
