Citing sources familiar with the negotiations The Wall Street Journal reported today that New York-based private-equity firm Apollo Management had raised its takeover offer price for chemical products manufacturer Huntsman Corp. by $0.75 per share to $28 per share. The new offer values Huntsman at around $6.5 billion, excluding debt.

On Wednesday, Columbus, Ohio-based resin producer Hexion Specialty Chemicals, Inc unveiled a cash offer to acquire Huntsman for $27.25 per share, totaling $10.4 billion, including refinanced debt. (See: Hexion''s $ 10.8-billion offer outbids Basell for Huntsman acquisition)

Hexion is a portfolio company of New York-based private equity firm Apollo Management LP, while Russian billionaire Len Blavatnik owns Basell.

The report says that the raised offer is a move against Dutch chemical maker Bassell Holdings, which has an existing $25.25 per share deal for Huntsman. On 26 June Basell, controlled by US industrial group Access Industries, revealed its definitive agreement to acquire Huntsman in a cash deal valued at about $9.6 billion, including the assumption of debt.

Based on Huntsman''s 221.9 million outstanding shares, the deal is worth about $5.6 billion, excluding debt.

The Wall Street Journal suggested that Bassell will now have until Wednesday to match Apollo''s offer, which plans to combine Huntsman with Hexion.

Hexion on 4 July revealed that its definitive proposal was indicative of a premium of about 8 per cent, net of dividends, over the Netherlands-based Basell''s offer. Hexion said a definitive proposal and offer was made with the transaction committee of the board of directors of Huntsman and was subject to execution of a merger agreement.

Hexion had said the proposal was fully financed with commitments from Credit Suisse and Deutsche Bank, adding that the offer and proposal were under the consideration of the Huntsman transaction committee.

The Huntsman-Basell agreement involves Basell acquiring all outstanding common stock of Huntsman for $25.25 per share in cash transaction that indicated a 34-per cent premium over the $18.90 closing price of Huntsman''s shares on Monday 25 June, 2007. At that time, entities controlled by MatlinPaterson and the Huntsman family with collective holdings of about 57 per cent in Huntsman backed the Basell move.

On 3 July, Huntsman confirmed the offer from Hexion that was subject to the termination of the agreement and arrangement of 26 June, 2007 with Basell AF. The proposal provides Hexion up to 12 months with a 90-day extension, under certain circumstances, to close the transaction. The cash price to be paid by Hexion will be upped at the rate of 8 per cent per annum, inclusive of any dividends paid, beginning nine months subsequent to a definitive merger agreement in place.