Banking & Finance

The Huntsman Merger Lives (HUN)

Douglas A. McIntyre

Huntsman_logoHuntsman Corp. (NYSE: HUN) is seeing explosive trading in its stock this morning before the open.  It appears that the private equity merger which was called off, then ruled as an improper break-up, may have some extra life to it after all.  Hexion Specialty Chemicals has announced that it is proceeding to seek to close its merger with Huntsman.

Affiliates of Apollo Management have agreed to make a capitalcontribution of $540 million to Hexion to assist in this merger. Thenew capital contribution is to help Hexion in addressing the issuesraised in the decision last week by the Delaware Chancery Court in thepending merger.

Apollo Management has also informed Hexion that it will waive itscontractual right to a transaction fee in connection with this merger.Apollo will also suspend its ongoing monitoring fees from Hexion for aperiod of three years.

Huntsman shares are up a massive 38% at $12.60 in very active pre-market trading.

Jon C. Ogg
October 9, 2008