Huntsman tortious interference suit against banks to proceed to trial

By Angela McDaniels

Tacoma, Wash., May 11 - Huntsman Corp.'s multi-billion-dollar damage suit against Credit Suisse and Deutsche Bank will be allowed to proceed to trial on June 8, according to a company news release.

In October 2008, the company took the banks to court after they backed out of their commitment to fund a merger of Huntsman and Hexion Specialty Chemicals, Inc. over solvency issues of the proposed combined company.

The trial will deal with Huntsman's claims of common law fraud against the banks in connection with its merger agreement with Basell AF, tortious interference with its merger agreement with Hexion, negligent misrepresentation and civil conspiracy.

Huntsman agreed in July 2007 to be acquired by Hexion and terminated it previous merger agreement with Basell after determining Hexion's proposal was superior.

On Monday, judge Fred Edwards of the 9th District Court of Montgomery County, Texas, ruled in favor of Huntsman on six motions, clearing the way for Huntsman to submit to a jury damages based on the merger consideration that would have been paid to its shareholders under its merger agreements with Basell and Hexion.

The company said its shareholders would have received $3.6 billion under the Basell merger and $4.6 billion under the Hexion merger.

The court's rulings rejected the banks' argument that Huntsman could not present evidence concerning the banks' multi-billion dollar mark-to-market losses or unjust enrichment as a remedy for fraud and tortious interference, the release stated.

The court granted two of the banks' motions, and Huntsman said neither of these motions reduces the damages it is entitled to present to the jury at the trial.

Huntsman makes differentiated chemicals and is based in the Woodlands, Texas.

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