Metalnewsnet Dec.25: Tronox Inc. canceled a deal to sell its titanium dioxide and electrolytics businesses to Huntsman Corp. (NYSE:HUN).

The company will instead pursue a bondholder-sponsored transaction.

The deal would have made Huntsman the second largest maker of a whitener used in products, including food, plastics, and paint.

Huntsman said that the company canceled its "stalking horse" agreement with Huntsman last week, which is a bid that means other companies may submit competing bids before a bankruptcy court auction.

Huntsman CEO Peter Huntsman said, "While we are disappointed in the result, it became clear that to prevail over the ad hoc bondholders, we would have to overpay for these assets."