SALT LAKE CITY — Applied Extrusion Technologies Inc. again rejected Huntsman Packaging Corp.'s proposal to acquire the firm, AET announced Sept. 24.
``We believe that the revised Huntsman proposal, like their previous proposal, fails in all material respects to serve the best interests of AET's shareholders,'' Amin J. Khoury, chairman of AET's board of directors, said in a news release.
The latest offer of $138 million is 75 percent more than AET's 50-day average trading value as of Aug. 7, Huntsman officials said.
``This is very surprising to me given the very full and fair offer,'' Huntsman Packaging President and Chief Executive Officer Richard Durham said in an interview at Huntsman headquarters in Salt Lake City. ``I'm surprised and disappointed with their reaction. We haven't concluded what our next step will be.''
Although the company is not pursuing a particular option, Durham said the possibilities could include walking away or making a tender offer.
``I believe this is a very good company with good market position,'' Durham added. ``AET would be a great fit with our company.''
Huntsman learned of AET's decision through a news release on the Internet, Durham said.
Peabody, Mass.-based AET is the world's second-largest producer of oriented polypropylene film, counting its recent acquisition of Montell NV's global films business. Mobil Chemical Co. is the top supplier of OPP films, which are used in markets including snack-food and candy packaging and some tape applications.
Huntsman is a leader in the extruded PVC and polyethylene film industry, making stretch, converter and barrier films.