A Huntsman shareholder sues Hexion Specialty Chemicals

21-Jul-08

Hexion hurt Huntsman investors when it did not publicly disclose its concerns about its proposed purchase of the chemical maker - this was the reason cited by a Huntsman Corp. shareholder who has has sued Hexion Specialty Chemicals. Share price of Huntsman soared in 2007, after Hexion, a unit of Apollo Capital Management, declared intentions to buy the chemical company for US$10.6 bln, including debt. Huntsman's financial soundness prompted by its not so sound results and the faltering US economy caused Hexion to doubts its purchase. Hexion filed a suit against Huntsman in June, seeking to limit its liability in the event the deal falls apart. With this step, shares tumbled 40%. The suit by the shareholder requests class-action status and also asks for monetary damages and expenses.