Hexion getting $540 million for Huntsman takeover
Hexion parent Apollo Management LP offered the capital infusion with banks hesitant to back mergers and acquisitions amid a global slowdown. Hexion had tried to walk away from the $6.5 billion takeover agreed to last summer, citing Huntsman's deteriorating finances.
A Delaware court sided with Huntsman last month, saying that Hexion, based in Columbus, Ohio, had "knowingly and intentionally" violated several of its covenants under the deal. The judge ordered Hexion to rework a financing package if necessary to complete the acquisition.
Hexion had said the combined companies couldn't survive on heavy debt financing, and it doubted Deutsche Bank AG and Credit Suisse Group AG would provide financing because of Huntsman's deterioration.
Huntsman sued the banks in September, charging they had interfered in the deal.
Shares of Salt Lake City-based Huntsman soared 28 percent, or $2.56, to end at $11.64 Thursday. "We've said all along, and continue to believe, the combined entity will be solvent," Huntsman spokesman Russ Stolle said.
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