Judge Lets Huntsman Suit Against Banks Advance

ERNEST SCHEYDER

NEW YORK (AP) — Investors sent shares of Huntsman Corp. higher Tuesday, after the chemicals maker said a Texas judge cleared the way for its multibillion-dollar suit against Credit Suisse and Deutsche Bank.

The stock rose 27 cents, or 4.7 percent, to $6.01 in morning trading. They traded as high as $6.31 earlier in the session.

The Woodlands, Texas-based company filed suit against the banks last year after they declined to fund Hexion Specialty Chemical's $6.51 billion buyout of Huntsman, which was proposed in July 2007.

To accept Hexion's proposal, Huntsman called off a previously accepted $5.6 billion buyout offer from Basell AF, opting to pay a $200 million breakup fee.

As the economy slid and consumers spent less, Huntsman lost $172.2 million in 2007, compared with a $229.8 million profit in 2006. Fearing it was overpaying for Huntsman, Hexion tried to break off the deal.

Credit Suisse and Deutsche Bank backed away from the deal last October, saying the combined company likely wouldn't be able to survive.