Huntsman terminates acquisition proposals

06-Feb-06

Huntsman Corporation, with US$11.5 billion revenues in 2004 has terminated discussions for existing proposals to acquire the Company, after a thorough review of the proposals. A review of the proposals received, prospects of the company and other strategic initiatives available, along with third party discussions have drawn the Board of Directors of the Company and its special committee to the conclusion that none of the proposals were in the best interests of the shareholders. Though the last proposals received were similar to the company's IPO last year, they have not been deemed to be adequate, particularly in light of the risks, uncertainties and extended timing of the proposed transactions. Huntsman in enthusiastic about the global opportunities and prospects from this year onwards, including expansion of its diverse businesses and possible divestitures to accelerate our debt reduction. Huntsman's Q4 2005 results were negatively impacted by Hurricanes Rita and Katrina. The company's largest North American facilities are located in the eye of Rita, leading to suspension of operations in the region for most the quarter. The Company estimates that Hurricanes Rita and Katrina had a direct negative impact of approximately US$140 million on fourth quarter EBITDA