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...



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