UPDATE 1-Activist White Tale wants three seats on Clariant board

(Adds details from statement)

ZURICH, Oct 30 (Reuters) - Activist investor White Tale on Monday demanded three seats on Clariant's board and an independent strategic review of the Swiss speciality chemicals group after thwarting its plans to merge with U.S. peer Huntsman in a $20 billion deal.

"While the termination of the ill-conceived Huntsman merger is a positive first step in executing on this strategy, by no means is this a cause for celebration," it said.

"The work is just beginning."

White Tale, the investment vehicle of hedge fund manager Keith Meister and New York-based fund 40 North, blocked the Huntsman deal by raising its Clariant stake to above 20 percent. The partners dropped the merger plan on Friday.

"Unfortunately, Clariant management's comments since Friday betray a desire to go back in time and pretend this episode did not occur. It is not October 2016," it added.

It demanded an independent financial adviser review strategic alternatives for Clariant.

White Tale has called in the past for Clariant to sell its plastics and coatings business and reinvest the proceeds in higher-margin businesses, but said it would keep an open mind based on what the review finds.

"Should we be unable to come to agreement with the current board of directors shortly, we will have no choice but to move to call an extraordinary general meeting so that all shareholders can have a voice in Clariant's future," it said.

Clariant was not immediately available for comment. (Reporting by John Miller, Editing by Michael Shields)