NEW YORK (AP) — Axiall confirmed Friday that it rejected a $1.4 billion buyout from rival Westlake Chemical, saying the deal undervalued the maker of building materials and chemicals.
Axiall said it was told of the buyout offer on Monday. Westlake made it known to the public on Friday.
Westlake had said Friday when it publicly announced the offer that it was disappointed by Axiall's rejection. Westlake offered a mix of stock and cash worth about $20 for each share of Axiall, more than double Axiall's closing price on Thursday. Westlake valued the deal at $2.9 billion, when debt is included.
Axiall Corp., based in Atlanta, makes chemicals that are used in paper, soap, aluminum and other products. It also makes windows, doors and other building products. Houston-based Westlake Chemical Corp. makes chemicals used in food packaging, trash bags and other products.
Shares of Axiall Corp., based in Atlanta, soared $8.13, or 83 percent, to close at $17.93. Shares of Westlake Chemical Corp. fell $1.09, or 2.3 percent, to $45.48.