By Colin Kellaher
Shares of Solstice Advanced Materials fell sharply on Monday after the Honeywell spinoff unveiled plans buy specialty-chemicals maker Element Solutions, and Element shares moved lower after the Solstice selloff erased most of the deal's premium.
Solstice shares were recently down 13% to $69.76, while Element shares were changing hands at $42.94, down 1.6%.
Solstice on Monday said it will pay $10 a share in cash and issue half of a share, worth about $40.10 based on Thursday's closing price, for each share of Element, for total consideration of $50.10, representing about a 15% premium.
However, the fall in Solstice's shares price brings the current value of the deal to about $44.88 a share for Element, about 2.9% above Thursday's closing price of $43.64 for the Miami Beach, Fla., company.
Write to Colin Kellaher at colin.kellaher@wsj.com