Judge's ruling clears the way for trial in Huntsman lawsuit

A Texas judge presiding over a lawsuit over an unsuccessful merger between Huntsman Corp. and Hexion Specialty Chemicals Inc. has ruled in favor of the Salt Lake City-based Huntsman on six motions, clearing the way for Huntsman to proceed to trial against Credit Suisse AG and Deutsche Bank, according to a statement released by Huntsman late Monday.

A trial is scheduled for June 8 before Judge Fred Edwards in 9th District Court in Montgomery County, Texas.

Almost two years ago, Huntsman was on its way to merging with Basell Holdings for $5.88 billion. Then private equity firm Apollo Global Management LP announced it would purchase Huntsman for $6.35 billion in cash, combining it with Apollo's Hexion. Hexion said at the time that the bid was fully financed by Credit Suisse and Deutsche Bank.

Hexion raised its offer to $6.5 billion days later and then backed out of the agreement with Huntsman.

The banks backed out of the deal in October 2008, saying the combined Huntsman-Hexion company no longer met the standards set when the deal was announced in June 2007. Huntsman has sued a handful of parties, including the banks, claiming the banks conspired with Apollo and interfered with the Huntsman-Basell deal and the later merger agreement with Hexion.

Edwards made his ruling on the six motions following a daylong hearing and review of briefings and evidence, according to Huntsman. In the prepared statement, Huntsman President and Chief Executive Officer Peter Huntsman, who was present in the courtroom for much of the daylong hearing, said, "Huntsman has always believed that our cause is just, and we now look forward to presenting our claims to the jury."

E-mail: lhancock@desnews.com