Another bidder

Hexion Specialty Chemicals has proposed to acquire all of the outstanding common stock of Huntsman Corporation for $27.25 per share in cash.

The Hexion proposal is subject to termination of Huntsman’s previously announced merger agreement with Basell and the execution of a definitive merger agreement with Hexion.

It also states that Hexion will have up to 12 months to close the transaction and that the cash price per share to be paid by Hexion will increase at the rate of 8% per annum beginning nine months after a definitive merger agreement is executed.

The proposal also includes a $325m reverse break-up fee payable by Hexion to Huntsman in the event the transaction does not close due to the failure to obtain regulatory clearance or requisite financing.

On June 26, 2007, Huntsman entered into an agreement with Basell, in which Basell agreed to acquire all of the outstanding common stock of Huntsman for $25.25 per share in cash.