Huntsman emerges victorious in court battle with Hexion

01-Oct-08

It has been ruled that world´s number one epoxy adhesive maker - Huntsman Corp. can force rival Hexion Specialty Chemicals Inc. to honor a US$6.5 bln buyout agreement. The judge concluded that Hexion, a unit of buyout firm Apollo Management LP, does not have sufficient grounds to cancel its offer for Salt Lake City-based Huntsman because of a slump in the chemical markets. It was found that Hexion officials ``knowingly and intentionally´´ violated their agreement with Huntsman to complete a merger that would produce one of the world´s largest specialty-chemical makers. If Hexion fails to move to complete the buyout, Huntsman officials will reportedly seek at least US$3 bln in damages over the failed deal. If the merger is canceled, damages may be considered in a second-phase of the trial in Wilmington, Delaware. In his decision, the judge refused to rule on whether the combined company was solvent. He noted that expert witnesses for each side gave differing opinions.