This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nova Chemicals Bought by Abu Dhabi Firm

Nova Chemicals (NCX) has accepted a buyout offer from the Abu Dhabi investment firm International Petroleum Investment Co. (IPIC) worth roughly $2.3 billion on Monday.

IPIC will pay $6 per share for Nova, which was trading at $1.34 at the close of regular trading on Friday. IPIC will also assume all of Nova Chemical's outstanding debt, and will underwrite a $250 million credit backstop facility to help Nova Chemicals shore up liquidity.

Nova was caught in a cash squeeze along with its peers in the global petrochemical market as the global economy sunk into a recession last fall. The company accepted IPIC's buyout offer so that it can "meet all of its obligations to all of its stakeholders," according to a statement released Monday.

"The opportunity to join IPIC comes at a good time for NOVA Chemicals and will enable us to offer both stability and long-term growth to many of our stakeholders," said Jeff Lipton, CEO of NOVA Chemicals. "IPIC is well financed and has a track record of working successfully with companies like ours."

Nova and its subsidiaries produce basic plastics and other chemicals. The company is officially based in Calgary Canada but has a U.S. headquarters in Pittsburgh. Shares of Nova Chemicals are traded on the New York Stock Exchange and on the Toronto Stock Exchange.

U.S. shares of Nova Chemicals soared almost 300% on the merger news and were recently fetching $5.31 per share.

Elsewhere in the chemical space, Dow Chemical (DOW) was falling 6.9% at $7.60 per share, DuPont (DD) was 4.1% lower at $19.51 per share, and Rohm and Haas (ROH) was down 3% at $54.42 per share.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs