NewsFlashHuntsman sues Apollo and partners

23 June 2008 15:05  [Source: ICIS news]

LONDON (ICIS news)--Huntsman on Monday said it had filed a $3bn (€1.9bn) law suit against Apollo and partners Leon Black and Joshua Harris for fraud and tortious interference, claiming they had induced it to terminate a merger agreement with Basell.

 

Huntsman last year pulled out of a merger with polyolefins producer Basell, before agreeing a deal with US-based Apollo affiliate Hexion Specialty Chemicals.

 

"It is now clear that, to get Huntsman to terminate its contract with Basell, Apollo falsely represented to Huntsman its commitment to closing a merger with Hexion at $28 per share, when it really intended all along to then delay the process and create enough problems with the transaction to bring us back to the table at a lower price,” said Huntsman CEO Peter Huntsman in a statement.

 

“We intend to pursue every available legal action required to hold Apollo, Black and Harris responsible for their ruinous actions,” he added.

 

The law suit was filed in Conroe, Texas, for damages worth $3bn plus exemplary damages, said Huntsman.

 

Hexion last Wednesday said that it had sued Huntsman, alleging that their $10.6bn merger would produce an insolvent business.

 

Since announcing the merger, Huntsman's finances have deteriorated due to increased debt and lower-than-expected earnings, Hexion said in a lawsuit filed in Delaware state court.

 

Apollo referred inquiries about the law suit to Hexion, which was not immediately available to comment.

 

($1 = €0.64)

By: Mark Watts
+44 20 8652 3214

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