Hexion, Huntsman extend merger termination date

By Lisa Kerner

Charlotte, N.C., April 7 - Hexion Specialty Chemicals, Inc. exercised its right to extend the termination date by 90 days to July 4, from April 5, under its merger agreement with Huntsman Corp.

Both companies have agreed to allow additional time for the Federal Trade Commission to review the proposed merger, a Huntsman news release said.

Hexion said in January that it planned to seek the extension.

It was previously reported that Huntsman and Hexion had each received a request for additional information, or second request, from the FTC.

Because the merger was not completed by April 5, the $28-per-share offer price is increased at the rate of 8% per annum, the release stated.

On July 12, 2007, Hexion, an affiliate of Apollo Management, LP, agreed to acquire Huntsman in an all-cash transaction valued at approximately $10.6 billion, including the assumption of debt. Huntsman shareholders approved the deal in October.

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

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