Huntsman, Hexion Saga Continues
Hexion said that Huntsman can extend its merger termination date, following an announcement by Huntsman that its board had authorized pushing out the deal’s termination date by another 90 days.
July 3, 2008
The tango between Hexion Specialty Chemicals and Huntsman, a process that started about a year ago, goes on.
Hexion said that Huntsman can extend its merger termination date, following an announcement by Huntsman that its board had authorized pushing out the deal’s termination date by another 90 days to Oct. 2 from July 4. It qualified its assent to the matter, though, noting that it will agree to the extension only if Huntsman’s board determines that the company’s acquisition at $28 per share can be closed in that period.
Huntsman, a Woodlands, Texas-based chemicals maker, also requested on Wednesday that Delaware court authorities speed up the handling of its $3 billion suit against Apollo and firm partners Leon Black and Joshua Harris. The company filed its lawsuit for breach of contract on June 23.
Peter Huntsman, president and chief executive said of the request for expedited court proceedings: Apollo and Hexion continue to assert their ongoing intention that Hexion will do the work necessary to complete the transaction. "We are asking the Delaware court to make those more than hollow words,” Huntsman said.
Craig Morrison, president and CEO of Hexion, counter punched on Wednesday with a statement that said: "There is no factual basis to conclude that the combined company would be solvent. As a result, the merger is not viable. We also believe that Huntsman has suffered a material adverse effect in its business. Nevertheless, we continue to meet our contractual obligations as demonstrated by the European Commission's decision on Monday to approve the Hexion-Huntsman merger."
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