Huntsman proves merger withdraw is tough
Kyle Siskey |
NEWS ANALYSIS - October 07, 2008
Huntsman v Hexion illustrates how difficult it will be for private equity firms to withdraw from mergers without paying the leaving price.
The decision denies Hexion Specialty Chemicals’ argument that a material adverse effect (MAE) allowed it to withdraw. Had Hexion won, it would have been able to pull out of the merger without paying a $325 million liability fee.
Contract negotiations came to the forefront of the Delaware Chancery Court decision.
“It really emphasizes a...
The rest of this article is available to subscribers only. Subscribe today for full access to this article.
Alternatively take a free trial, giving you access for 48 hours*.
If you are already a subscriber, please log in below to access the rest of this article.
*some articles may be excluded.