Axiall (NYSE:AXLL) Spurns Westlake Chemical’s (NYSE:WLK) Move To Buy

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Axiall Corp (NYSE:AXLL)

Axiall Corp (NYSE:AXLL) has rejected the offer of Westlake Chemical Corporation (NYSE:WLK) to by the company for the second time in the last four years. Westlake had said that it was ready to offer cash of $11.00, as well as, 0.1967 shares of Westlake for each Axiall share. On a per-share basis, the company offered $20.00, which meant an estimated total value of $1.4 billion. In 2012, Axiall was a takeover target for the same company.

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Axiall stock hit a yearly high of $51.35 though it was considerably lower when Westlake made its unsolicited offer on January 25. Axiall’s stock jumped 83% after it disclosed the rejection of the conditional offer to buy its share of cash and stock.

Axiall indicated that its Board reviewed and considered the proposal after getting assistance from its legal, as well as financial advisors and took the decision unanimously before the deadline set by the suitor. While Morgan Stanley & Co. LLC was their financial advisor, Jones Day was legal counsel, and has given their opinion on the deal.

Taking Advantage Of Equity Price

Axiall’s President and CEO, Timothy Mann, said that Westlake Chemical made an opportunistic bid citing the stock price of December 1 last year. He added that the offer undervalued the assets, as well as long-term prospects significantly. Mann said that the company was committed to saving $100 million from cost-cutting measures, as well as productivity targets this year.

Mann indicated that the company was also continuing to assess its complete business portfolios, as well as assets to spot opportunities to improve shareholder value. That included the sale process of its building products unit. Westlake Chemical already hasa  4.4% stake and made an unsuccessful bid to buy Axial in 2012 for $1.2 billion. At that point in time, the company was known as Georgia Gulf.

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