Huntsman rejects Hexion attempt to back out of merger

TEL AVIV (MarketWatch) — Huntsman Corp., the Woodlands, Texas, chemicals specialist, said it rejected what it called a demand by Hexion Specialty Chemicals Inc. to back out of the companies’ merger accord. Hexion is controlled by an affiliate of the Purchase, N.Y., private-equity firm Apollo Management. In a statement on Thursday, Huntsman said it would seek to close the deal under the agreed terms. Late on Wednesday, Hexion said that it sued Huntsman in the Delaware Court of Chancery. It said that because Huntsman’s performance had weakened substantially, closing the companies’ $10.6 billion merger would render the combined company insolvent. It said that the companies could continue in business separately, but if they were combined, they could not support the debt load that the deal envisioned. Huntsman President and Chief Executive Peter Huntsman called Hexion’s effort “a blatant attempt to deprive our shareholders of the benefits of the merger […]

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