The Wall Street Journal: Saudi Giant Snaps Up Clariant Stake From Activists

January 25, 2018

“Saudi Basic Industries Corp. said Thursday it has acquired a roughly 25% stake in Clariant AG from U.S. activist investors, making it the biggest shareholder and triggering a sharp fall in the Swiss chemicals company’s share price.

“The deal eases pressure on Clariant after months of acrimony with activist investor White Tale Holdings over the direction of the company, and could reduce the chances it will face a hostile takeover. The Saudi company, commonly known as Sabic, has worked with Clariant in joint ventures before and said Thursday that it has no plans to launch a full takeover. …

“White Tale, which was dissolved Jan. 18, comprised investment funds 40 North Latitude Master Fund Ltd., controlled by David Winter and David Millstone; and Corvex Master Fund Ltd., controlled by Keith Meister. Corvex owned 7.56% of Clariant while 40 North held 17.58%.

“‘We have been significant shareholders of Clariant since 2016. SABIC’s strategic investment in Clariant is a successful outcome and we are pleased to have played a role in making it possible,’ said Mr. Millstone.”

Read the full article here.