CEO, Manalo LLP

Roderick Manlo

Manalo LLP

We provide event driven research services to hedge fund managers and institutional investors that cover select definitive and pre-announced M&A deals, focusing on identifying and analysing the key upside and downside risks to a particular transaction. We primarily analyse $billion+ takeovers or mergers of publicly-traded European targets, but also look at deals globally to assess when there is a key European angle or aspect that can influence the deal outcome.

With over 16 years’ experience in risk arbitrage and investment banking, we specialise in providing research and advisory services on all facets of risk arbitrage, with particular expertise in:

- Cross-Border M&A
- Hostile Takeovers
- Local Takeover Codes
- Antitrust & Competition
- Financial Valuation
- Shareholder Vote Analysis
- Impacts of Precedent Transactions
- Risk Arbitrage Trading Strategies

Event-Driven

When the $20bn Huntsman / Clariant merger-of-equals was announced, it was generally met with disappointment by shareholders from both sides, but Clariant’s shares (the acquirer) initially rose on the synergy and accretion upside, and on speculation that the company may receive a takeover proposal from a third party. M&amp;A has been rampant in the chemicals industry and it is logical to consider that Clariant, a perennial takeover target, could receive a counterbid given its focus on more stable and higher margin specialty chemicals.  Despite virtually no premium offered for Huntsman, the target, the risk arbitrage spread has traded wide since the 22-May-17 deal announcement (currently around 10% gross) due to desks pushing the prospects of an interloper for Clariant (Evonik has been mentioned, accentuated by the fact that a sale process was not run for Clariant). Speculation intensified in late July after an article in Swiss magazine Bilanz cited comments made by Clariant’s CEO, Hariolf Kottmann. The article quotes Kottmann as saying that when discussions intensified with Huntsman in autumn 2016, Clariant held parallel negotiations with two other companies to discuss a merger-of-equals comparable to the Huntsman deal and a merger with a capital contribution. This note assesses the companies that have reportedly expressed interest in a transaction with Clariant, namely Evonik, and the likelihood of a counterbid for the company.

When the $20bn Huntsman / Clariant merger-of-equals was announced, it was generally met with disappointment by shareholders from both sides, but Clariant’s shares (the acquirer) initially rose on the synergy and accretion upside, and on speculation that the company may receive a takeover proposal from a third party. M&amp;A has been rampant in the chemicals industry and it is logical to consider that Clariant, a perennial takeover target, could receive a counterbid given its focus on more stable and higher margin specialty chemicals.  Despite virtually no premium offered for Huntsman, the target, the risk arbitrage spread has traded wide since the 22-May-17 deal announcement (currently around 10% gross) due to desks pushing the prospects of an interloper for Clariant (Evonik has been mentioned, accentuated by the fact that a sale process was not run for Clariant). Speculation intensified in late July after an article in Swiss magazine Bilanz cited comments made by Clariant’s CEO, Hariolf Kottmann. The article quotes Kottmann as saying that when discussions intensified with Huntsman in autumn 2016, Clariant held parallel negotiations with two other companies to discuss a merger-of-equals comparable to the Huntsman deal and a merger with a capital contribution. This note assesses the companies that have reportedly expressed interest in a transaction with Clariant, namely Evonik, and the likelihood of a counterbid for the company.

Huntsman / Clariant: Is a Counterbid for Clariant Likely?

Switzerland

Clariant AG is a global specialty chemicals company. The Company's products and services are grouped into four business areas: Care Chemicals, Catalysis & Energy, Natural Resources and Plastics & Coatings. Clariant develops, produces, markets and sells specialty chemical products for various end markets.

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Clariant AG (CLN VX)

Huntsman / Clariant: Is a Counterbid for Clariant Likely?

When the $20bn Huntsman / Clariant merger-of-equals was announced, it was generally met with disappointment by shareholders from both sides, but...

Roderick Manlo

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)