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.?xml:namespace>
"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 ?xml:namespace>
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
Apollo referred inquiries about the law suit to Hexion, which was not immediately available to comment.
($1 = €0.64)
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