Huntsman Corp. looks like it may be trading up 50% pre-market after a recent battering. This chemicals and products maker had been down and out after its private equity buyout from Apollo Management & Hexion was terminated by the buyers. In a twist of fate, a Delaware judge has issued an opinion refusing toallow Apollo to walk away from its $6.5 Billion buyout. For the private equity firms, the hunters may have become the hunted.
What isinteresting here is that this may not actually force a merger atoriginal terms. It may not even force a merger at all. But itstrengthen the case that Huntsman’s business deterioration was not an unforeseeable change nor a material change in business as much is partof the environment. This will likely strengthen the case that Huntsmanwill be entitled to larger termination fees and possibly to punitivedamages if things continue going in its favor.
Apollo and Hexion had alleged that Huntsman was not entitled to a $325million break up fee and had suffered a Material Adverse Effect sincesigning the Merger Agreement and that a solvency certificate or opinioncould not be provided for the combined Hexion/Huntsman entity at theclosing. Huntsman continues to seek damages exceeding $3 billion inits Texas lawsuit against Apollo and its partners Leon Black and JoshuaHarris.
Shares are indicated up at $11.60 on active pre-market trading volume.Shares closed at $7.35 yesterday and its 52-week trading range is $7.01to $27.00.
Jon C. Ogg
September 30, 2008
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.