09 October 2008 14:21 [Source: ICIS news]
TORONTO (ICIS news)--Hexion Specialty Chemicals will get $540m (€394m) in funding from its owner, private equity group Apollo Management, to complete its disputed $10.6bn merger with Huntsman after a US court ordered that the deal be closed quickly, the US producer said on Thursday.
"We are grateful for Apollo's support as we continue to work towards closing the Huntsman transaction," said Hexion CEO Craig Morrison.
Since the court’s decision, Hexion had taken a number of significant steps towards completion of the Huntsman merger, it said.
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“In addition, Hexion is in ongoing discussions with Huntsman regarding a wide range of matters relating to the closing,” it added but did not disclose details.
Under the terms of their 2007 merger agreement Hexion is paying over $28/share for Huntsman.
Huntsman's stock closed up 3.3% at $9.08 in New York on Wednesday even though US stocks were down for the sixth straight day as investors remained concerned about the global financial crisis.
Huntsman’s 52-week high is $28.26.
($1 = €0.73)
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