From Deseret News archives:
Huntsman Corp. wants $3 billion for failed Hexion buyout
A Delaware judge is slated to begin hearing arguments Sept. 8 on whether Apollo subsidiary Hexion Specialty Chemicals Inc. can cancel its $6.5 billion buyout. The unit wants to back out because Huntsman's debt had allegedly increased and its profit wouldn't meet forecasts. Huntsman wants the unit of Apollo, a buyout firm run by ex-Drexel Burnham Lambert banker Leon Black, to complete the deal or cover investors' losses.
"Huntsman is confident it will prevail in the trial in Delaware, which will pave the way to closing the merger at $28 per share," Russ Stolle, a Huntsman spokesman, said in an interview. If Apollo and Hexion renege, "Huntsman will seek damages that Huntsman currently estimates to be in excess of $3 billion."
Hexion sued Huntsman June 18 in Delaware Chancery Court in Wilmington, arguing the combined company would be insolvent and that its lenders were leery of financing the deal. Salt Lake City-based Huntsman responded by suing New York-based Apollo and partners Black and Joshua Harris in Texas state court for $3 billion, accusing them of wrongfully interfering with another bid for the chemical maker.
Delaware Chancery Judge Stephen Lamb has given both companies six days to present witnesses. Lamb will hear the case without a jury. Damages would be considered in a second phase of the case.
"We look forward to presenting our case," Jonathan Gasthalter, a Hexion spokesman, said in an e-mailed statement.
The proposed buyout includes $4 billion of assumed debt and $100 million to help defray a $200 million fee that Huntsman paid Access Industries Holdings LLC to end their merger agreement. New York-based Access offered to buy Huntsman for $25.25 a share before Hexion outbid it.
The merger agreement also calls for Hexion to pay a $325 million breakup fee if the buyout doesn't go through, according to court papers.
Comments
- Sports on the air 1:21 a.m.
- 2009 MLS Cup recap 12:45 a.m.
- MLS Cup winners, MVPs 12:41 a.m.
- Real Salt Lake: Game at a glance 12:36 a.m.
- Paper circulation worse than it looks 12:28 a.m.
- RSL wins MLS Cup on penalty kicks 12:22 a.m.
- Editorial: Cancer screening 12:15 a.m.
- Afterthoughts 12:15 a.m.
- Treat teachers with respect, trust 12:15 a.m.
- 'Reform' helps old, hurts young 12:15 a.m.
- BYU records with win
- Jazz outlast Pistons in overtime
- Glenn Beck to enter politics?
- Cougars turn focus to dreaded rivals
- Cougars put the fun back in football
- Former BYU professor remembered
- Florida No. 1, TCU 4 in AP Top 25
- Kirilenko heating up for the Jazz
- Man dies after being run over
- Police link alcohol to murder
- Buttars wants to limit gay rights laws
202 - Glenn Beck to enter politics?
191 - Palin plans tour stop in Utah
178 - RSL wins MLS Cup on penalty kicks
130 - BYU records with win
129 - Palin's book shows she's unqualified
125 - Officer cleared in Cardall Taser case
103 - BYU cuts Women's Research Inst.
100 - Jazz finally win in San Antonio
98 - Utes knock off rival Aggies
93
There's a lot of reason to leave your plastic home as you shop:
I don't pretend to be an expert on global warming. I've met with...
That game was amazing! I think this will really help the sport grow in Utah....
Congrats on a great win. Utah as a whole should be proud not just of a major...
Congrats Real Salt Lake! but, they aren't the first major sports team to...
I told ALL of you how much i liked NED Pure irony his contributions vs x...
this is to NevadaUTE @ 10:25!!! I love soccer, I love Real and it brought a...
wow!!! amazing. UTAH JAZZ DO SOMETHING!!!
So much fear and anger from Beck lovers. You all lost the last election, we...
This is the most emotion I have had watching a sporting event since my...
Nicky Rimando is my hero! I love that guy. He has had his detractors, but...
Two stars means nothing! We played as a team and it showed! I'm still in...


You can be the first to comment on this story.