Robbins Arroyo LLP: Rejected Acquisition of Axiall Corporation (AXLL) by Westlake Chemical Corporation (WLK) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the rejected acquisition of Axiall Corporation (NYSE: AXLL) by Westlake Chemical Corporation (NYSE: WLK). On January 29, 2016, Axiall announced the rejection of an unsolicited proposal pursuant to which Westlake Chemical would acquire Axiall. Under the terms of the proposal, Axiall shareholders would receive $20.00 for each share of Axiall common stock, comprised of $11.00 in cash and 0.1967 of a Westlake Chemical share.
Is the Rejection of the Proposed Acquisition Best for Axiall and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Axiall is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $20.00 merger consideration represents a premium of 108.3% based on Axiall’s closing price on January 22, 2016. Axiall traded as low as $9.04 as recently as January 20, 2016.
Albert Chao, Westlake Chemical’s President and Chief Executive Officer, said, “We are surprised and disappointed by Axiall’s summary rejection of our proposal, which provides Axiall shareholders with a significant premium and upside potential via their participation in the increased scale and synergies of the combined company. The combined company would be more diversified and have a stronger financial profile than Axiall, providing it with significant financial and operational flexibility, a greater ability to serve its customers, and improved ability to capitalize on future investment opportunities. We are confident that our proposed transaction represents the best way to maximize value for Axiall shareholders, but despite the attractiveness of our proposal, Axiall has rejected the proposal and refused to engage with us to discuss its merits.”
In light of these facts, Robbins Arroyo LLP is examining Axiall’s Board of Directors’ decision to reject the proposal and refusal to engage in negotiations.
Axiall shareholders have the option to file a class action lawsuit to ensure the Board of Directors properly evaluates the proposal to obtain the best possible price for shareholders and the disclosure of material information.
Axiall shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.