Commodity chemicals maker Westlake Chemical Corp (>> Westlake Chemical Corporation) said it has withdrawn its $1.9 billion offer to acquire Georgia Gulf Corp (>> Georgia Gulf Corporation), following talks with its smaller peer's management.
Shares of Georgia Gulf fell 9 percent to $31.30 in post-market trade on Friday.
Westlake also said it plans to liquidate its holdings of Georgia Gulf common stock as market conditions permit.
The company, in February, had threatened to withdraw its sweetened $1.9 billion offer, or $35 a share, for Georgia Gulf.
"We are disappointed in this result but we continue to work on our previously announced important strategic initiatives," said Westlake Chief Executive Albert Chao.
Shares of Westlake, valued at $3.98 billion, rose 5 percent to $59.78 in after-market trade on Friday.
(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Saumyadeb Chakrabarty)