Filed under: Deals, Movers and shakers, Private equity industry, Value and lack thereof, Public or private?

Huntsman Corp. (NYSE: HUN) is seeing the value of its stock destroyed in after-hours trading. This was one of those pending mergers that was old enough that many had forgotten it was even on the docket. Hexion Specialty Chemicals has announced that it has filed suit in Delaware to exit its contractual obligations to acquire the company.

The Hexion-led filed to terminate its proposed $10.6 Billion acquisition of Huntsman Corp. Hexion has said in this suit filed that it believes that the capital structure concurred to by both Huntsman and by Hexion for the combined company is no longer viable.

The reasons noted are because of Huntsman’s increased net debt and its lower than expected earnings. Hexion notes that both companies are individually solvent but it believes that the merger’s capital structure previously concurred to would render the combined company insolvent.

Keep reading at 247WallSt.com for the rest of the details and analysis.

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This entry was posted on Wednesday, June 18th, 2008 at 7:59 pm and is filed under Private Industry News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.