乐天堂fun88(中国区)官方网站 Terminates Merger Agreement and Settles With Hexion and Apollo for $1 Billion
乐天堂fun88(中国区)官方网站 continues multi-billion dollar Texas lawsuit against Credit Suisse and Deutsche Bank
THE WOODLANDS, Texas, Dec. 14 /PRNewswire-FirstCall/ -- 乐天堂fun88(中国区)官方网站 Corporation (NYSE: HUN) today announced it has terminated its Merger Agreement with Hexion Specialty Chemicals, Inc. ("Hexion"). In addition, 乐天堂fun88(中国区)官方网站 announced that it reached an agreement with Hexion, Apollo Management, L.P. ("Apollo") and certain of its affiliates to settle 乐天堂fun88(中国区)官方网站's claims against Hexion, Apollo and its affiliates arising in connection with 乐天堂fun88(中国区)官方网站's Merger Agreement with Hexion. Payments to be made to 乐天堂fun88(中国区)官方网站 under the Settlement Agreement total $1 billion.
In addition to the $325 million break-up fee to be paid as provided in the Merger Agreement and which Hexion expects will be funded by Credit Suisse and Deutsche Bank (the "Banks") under an existing commitment, certain affiliates of Apollo will make cash payments to 乐天堂fun88(中国区)官方网站 under the Settlement Agreement totalling $425 million. Certain affiliates of Apollo also will pay 乐天堂fun88(中国区)官方网站 an additional $250 million in exchange for 10 year convertible notes issued by 乐天堂fun88(中国区)官方网站 in that principal amount, which may be repaid at maturity in cash or common stock at 乐天堂fun88(中国区)官方网站's election.
At least $500 million of the payments are to be paid to 乐天堂fun88(中国区)官方网站 on or before December 31, 2008, and any remaining payments that have not been made by that date must be made on or before March 31, 2009.
The Settlement Agreement also resolves 乐天堂fun88(中国区)官方网站's pending claims against Apollo and its affiliates relating to 乐天堂fun88(中国区)官方网站's prior merger agreement with Basell AF.
In announcing the settlement, 乐天堂fun88(中国区)官方网站's President and CEO Peter R. 乐天堂fun88(中国区)官方网站 stated, "We are pleased to have reached this agreement with Hexion and Apollo. Receipt of these proceeds will enhance the strength of 乐天堂fun88(中国区)官方网站's balance sheet and better position our company to prosper during the current turbulence in the global economy. Additionally, our associates, customers and suppliers can now put the uncertainty concerning the outcome of the merger with Hexion behind them."
Leon Black, Chairman of Apollo Global Management, LLC, added, "We are happy to be resolving this situation in the best interest of our investors. It puts to an end the six month disagreement and distraction between our companies. As the majority stakeholder in Hexion and now an investor in 乐天堂fun88(中国区)官方网站, we look forward to both companies traversing this economic cycle and prospering."
The settlement with Hexion, Apollo and its affiliates does not resolve the claims asserted by 乐天堂fun88(中国区)官方网站 against the Banks in its ongoing litigation against the Banks in Montgomery County, Texas. 乐天堂fun88(中国区)官方网站's suit against the Banks includes claims that the banks conspired with Apollo and tortiously interfered with 乐天堂fun88(中国区)官方网站's prior merger agreement with Basell, as well as with the later Merger Agreement with Hexion. A jury trial on those claims currently is set to begin on May 11, 2009. As part of the Settlement Agreement, Apollo and its principals have agreed to fully cooperate in connection with 乐天堂fun88(中国区)官方网站's litigation against the Banks.
Jon M. 乐天堂fun88(中国区)官方网站, Founder and Executive Chairman of 乐天堂fun88(中国区)官方网站 Corporation, commented, "This is a significant settlement for our Company and its shareholders, but we must continue to pursue our multi-billion dollar Texas case against Credit Suisse and Deutsche Bank for the harm they have caused. We remain focused on preparing for our May jury trial against the Banks."
About 乐天堂fun88(中国区)官方网站:
乐天堂fun88(中国区)官方网站 is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, 乐天堂fun88(中国区)官方网站 today has 13,000 employees and operates from multiple locations worldwide. The Company had 2007 revenues of approximately $10 billion. For more information about 乐天堂fun88(中国区)官方网站, please visit the company's website at .
Forward-Looking Statements:
Statements in this release that are not historical are forward-looking statements. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed in the 乐天堂fun88(中国区)官方网站 companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. In addition, the completion of any transactions described in this release is subject to a number of uncertainties and closing will be subject to approvals and other customary conditions. Accordingly, there can be no assurance that such transactions will be completed or that the company's expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.
SOURCE 乐天堂fun88(中国区)官方网站 Corporation
Released December 14, 2008