Huntsman readies case against Credit Suisse, Deutsche Bank over failure to fund merger with Hexion

By Lisa Kerner

Charlotte, N.C., Nov. 12 - Huntsman Corp. said it began discovery in its lawsuit against Deutsche Bank and Credit Suisse.

Huntsman intends to pursue depositions of senior Credit Suisse and Deutsche Bank executives, including Gary Vogle, the global head of private equity for Credit Suisse, and Thomas Gahan, former head of investment banking for Deutsche Bank, according to a Huntsman news release.

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

A trial in the matter is set to begin on Feb. 9 in Montgomery County, Texas.

Huntsman is seeking more than $3 billion in actual damages, plus exemplary damages, attorneys' fees and interest, the company said in a prior statement.

Hexion is pursuing similar claims against the banks in New York.

The Court of Appeals for the Ninth District of Texas awarded a temporary injunction in favor of Huntsman earlier, enjoining affiliates of Credit Suisse and Deutsche Bank from filing any lawsuit that alleges that the combined company would be insolvent or would be incapable of paying off its notes to the banks, it was previously reported.

In July 2007, Hexion agreed to acquire Huntsman in an all-cash transaction valued at approximately $10.6 billion. Huntsman shareholders approved the deal in October 2007.

"We are eager to try our Texas claims, which have already withstood appellate review in the Texas Court of Appeals," Huntsman president and chief executive officer Peter Huntsman said in the release. "We are confident that a Texas jury will see - and be willing to redress - the serious injuries Huntsman has suffered at the hands of these banks."

Based in Columbus, Ohio, Hexion makes thermoset resins. Huntsman is a Salt Lake City manufacturer of differentiated chemicals and pigments.

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