NEW YORK (TheStreet) -- Shares of Axiall Corp. (AXLL) are soaring by 83.52% to $17.99 on heavy volume in early afternoon trading on Friday, as the company rejected a $1.4 billion cash-and-stock takeover offer from Westlake Chemical Corp. (WLK).
Atlanta-based Axiall is a manufacturer and international marketer of chemicals and building products.
Westlake offered $20 per share, comprised of $11 in cash and 0.1967 of its stock, to acquire all outstanding Axiall shares, according to a company statement today.
The proposal represents a premium of more than 100% to Axiall's closing share price as of January 22.
Axiall "summarily" rejected the offer and said it preferred to pursue a standalone strategic plan, Westlake added.
"In this challenging environment, we believe Axiall's unwillingness to even discuss our compelling proposal exposes its shareholders to significant risk and uncertainty," Westlake CEO Albert Chao said in a statement.
Houston-based Westlake is a manufacturer and marketer of basic chemicals, vinyls, polymers and fabricated building products.
About 8.39 million of Axiall's shares traded hands by this afternoon, well above its average volume of 1.66 million shares per day.
Shares of Westlake are dropping by 6.36% to $43.61 on Friday afternoon.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered by the team.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AXLL