Advertisement

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

Hexion and Huntsman Bicker Over Loans

July 14, 2008 | A version of this story appeared in Volume 86, Issue 28

Hexion Specialty Chemicals says it will try–but doubts it will have much success–securing alternative financing for the $10.6 billion purchase of Huntsman Corp. Hexion earlier agreed to the purchase but now wants to drop it. Hexion has retained the investment bank Gleacher Partners as an adviser and is seeking Huntsman's consent to pursue alternative financing and release Huntsman's confidential information to potential financing banks. To date, Huntsman has only consented to "additional financing" above what banks had committed when the merger was signed. Hexion says the merger agreement has no such provision and only requires the firm to seek alternative financing at terms no worse than the original loans. But in a court filing last week, Hexion stated that it "does not believe that alternate financing on terms no less favorable than those provided in the commitment letter can be obtained." In that document, Hexion says Huntsman's debt has increased and that there is a gap between the committed financing and the amount of funds needed to close the deal. It cites poorer than expected performance in Huntsman's titanium dioxide, textile effects, and performance chemicals businesses. Huntsman has maintained that the committed financing is sufficient.

Article:

This article has been sent to the following recipient:

0 /1 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.