Huntsman says Hexion management trying to scuttle merger

Mumbai: Huntsman Corporation will fight Apollo Management's moves to back out of its  planned $10.6 billion acquisition of the company by Hexion Specialty Chemicals.

Apollo Management, which owns the Hexion Specialty Chemicals Inc, is violating its corporate obligations by seeking to cancel the merger, Peter Huntsman, chief executive of the Salt Lake City-based chemicals maker said in a statement.

"We believe Hexion and Apollo's actions are inconsistent with the terms of the merger agreement and the obligations to Huntsman and its shareholders," Peter Huntsman, president and CEO of Huntsman, said in a statement.

"These actions appear to be a blatant attempt to deprive our shareholders of the benefits of the merger agreement that was agreed nearly a year ago," Huntsman said.

Columbus, Ohio-based Hexion said in a suit filed yesterday in Delaware Chancery Court in Wilmington, that the capital structure for a combined entity would no longer be viable and would render it insolvent.

Huntsman dropped 34 per cent to around $13.20 in German composite trading as of 10:00 a.m. local time.