Ademi LLP Challenges Huntsman-Olin Merger Terms

Under the terms of the proposed transaction, Huntsman investors are slated to receive 0.5476 shares of Olin for each share of Huntsman currently held. Once the deal closes, the combined entity will be split between the two groups, with Olin shareholders controlling approximately 54.5% of the company and Huntsman stakeholders holding the remaining 45.5%.

Legal analysts at Ademi LLP are scrutinizing the agreement for potential breaches of duty, specifically pointing to provisions that impose significant financial penalties on Huntsman should the company pursue competing bids. The firm claims these limitations effectively stifle market alternatives. Furthermore, investigators are questioning the structure of change-of-control arrangements that provide substantial benefits to Huntsman insiders, raising questions about whether the board prioritized these incentives over the valuation offered to the broader investor base.