Stock of the Day

April 13, 2020

Huntsman (HUN)

$11.82
-$0.04 (-0.3%)
Market Cap: $2.08B

About Huntsman

Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

Today's Trend

Huntsman Corporation (NYSE: HUN) shares are under pressure after the company announced a merger with Olin Corporation, and investors are now reacting to the deal terms and multiple shareholder-lawyer investigations into whether Huntsman is getting a fair price.

  • The announced combination with Olin would create a larger chemicals company with expected cost synergies and a stronger scale profile, which could support the long-term strategic case for Huntsman. Article Title
  • Analysts and trade publications are highlighting the merger as a strategic move that could improve operating efficiency, but the outlook remains balanced because the chemicals market is still facing a soft macro backdrop. Article Title
  • Media coverage has increased attention on the transaction, with investors focusing on the exchange ratio and how the merger will affect Huntsman shareholders. Article Title
  • Kahn Swick & Foti and Ademi LLP have opened investigations into whether Huntsman’s sale process and pricing were fair, raising the risk of shareholder litigation and possible deal-related uncertainty. Article Title

Overall, Huntsman (HUN) is moving lower as the market weighs merger upside against concerns that the deal may undervalue the company and invite legal challenges.

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