Huntsman hopping mad over Apollo's canceled buyout

Huntsman called partners of New York-based Apollo Management LP a disgrace and said their decision was one of the most unethical contract violations he's seen in a half-century of business.

An Apollo affiliate owns Hexion Specialty Chemicals Inc., which agreed last year to acquire Huntsman Corp. for $6.5 billion. Hexion said Wednesday it no longer thinks it can complete the deal because Huntsman's finances have deteriorated.

Jon Huntsman, the company's founder and chairman, promised to make Apollo pay if it doesn't complete the deal.

"Our company will fight Apollo vigorously on all fronts," he said in a statement to The Associated Press.

A Hexion spokesman said the company's action spoke for itself and declined to comment further.

Huntsman Corp. could be in line for settlements totaling $325 million settlement if it can show it was unfairly spurned, Moody's Investors Service said Thursday. Moody's said it was putting ratings for both companies under review for a possible downgrade.

Hexion announced Wednesday it no longer thinks it can complete the deal because of Huntsman's increased debt and its lower-than-expected profits. Hexion said the combined companies couldn't survive on heavy debt financing, and it doubted Deutsche Bank AG and Credit Suisse Group AG would provide financing because of Huntsman's deterioration.

Jon Huntsman responded on that point. "Of course, our business has been considerably damaged during the nearly yearlong period that Apollo should have used to get this transaction closed," he said.

Huntsman's first-quarter profit tumbled 84 percent as the weaker dollar and costlier raw materials and feedstocks ate away at higher revenues. Earnings for the three months ended March 31 were $7.3 million, down from $46.6 million in the first quarter of 2007.