Huntsman nabs another win in court; GM ready to sell parts maker; Ticketmaster adds new talent

By Aaron Hochman-Zimmerman

New York, Oct. 23 - Stocks whipped wildly on Thursday during what became a slow day in deal-land.

As the session began to wind down, shares of Huntsman Corp. had a chance to climb at the end of a mixed performance after the release of another court decision in favor of its merger with Hexion Specialty Chemicals, Inc.

A Texas court ordered the financing banks to temporarily resist the temptation to file lawsuits claiming the combined company would be insolvent and a money-losing venture for all concerned.

Other companies losing money included usual suspects General Motors Corp. and Chrysler LLC.

The major U.S. automakers have long been the subject of merger hopes and rumors.

On Thursday, GM took a step toward shoring up its balance sheet by announcing it will begin seeking buyers for its aftermarket parts division, ACDelco.

Also, Ticketmaster expanded farther into the entertainment world by getting its hands on a controlling stake in Warner Music Group Corp.'s talent management arm, Front Line Management Group Inc.

Meanwhile, in the general market space, the Dow Jones Industrial Average ended a rocky day on the positive side by gaining 172.04, or 2.02%, to end at 8,691.25, while the Nasdaq Composite Index suffered on the day, dropping 11.84, or 0.73%, to finish at 1,603.91.

The S&P 500 improved by 11.33, or 1.26%, to close at 908.11.

Texas justice for Credit Suisse, Deutsche Bank

A bank is only as good as its word in Texas, according to another Texas court ruling.

The Court of Appeals for the Ninth District of Texas upheld the Montgomery County District Court's decision that Credit Suisse and Deutsche Bank could not back away from financing the merger between Huntsman and Hexion Specialty Chemicals.

The banks have claimed that the deal will prove insolvent and they should not be held accountable to the terms of their commitment letter signed on July 11.

Still, "we hold that the trial court did not abuse its discretion by issuing the temporary injunction," the ruling of the appeals court said.

"Accordingly, we affirm the trial court's order," wrote chief justice Steve McKeithen on behalf of the three-judge panel.

On the news, Huntsman shares (NYSE: HUN) tacked on $0.34, or 3.09%, to close the session at $11.33.

The deal is still set to close on Tuesday.

GM at used car lot

It was GM's turn to put its capital-raising machine into gear on Thursday.

Eyes have been on Detroit after investor Kirk Kerkorian unloaded his stake in Ford Motor Co.

Now, embattled U.S. automaker GM, which has been planning a potential sale, finally announced it hopes to divest its aftermarket parts producer, ACDelco.

"A sale is expected to promote more rapid growth of ACDelco globally," the company said in a press release.

In the release, the auto-giant also reminded potential buyers that its Hummer brand and factory in Strasbourg, France, has been and still is for sale.

GM said it needs to sell between $2 billion and $4 billion as part of a program to prop up its liquidity position by $15 billion by the end of 2009.

Rumors swirled around Detroit suggesting a merger may be in the works with privately held Chrysler.

Even representatives John Dingell, D-Mich., and Fred Upton, R-Mich., began a bipartisan campaign to convince the government to step in to broker a deal between the two automakers, the Wall Street Journal reported.

Shares of GM (NYSE: GM) slipped by $0.09, or 1.45%, to finish the day at $6.10.

Hottest ticket in town

Ticketmaster scored tickets to the boardroom of talent manager Front Line Management Group.

With a wristband and $123 million, Ticketmaster took a controlling stake in Front Line, which handles the careers of nearly 200 artists, according to a company press release.

"While the Ticketmaster name has been synonymous with live entertainment for some time, today we took a significant step in solidifying our position in the music business. And, we will greatly benefit in having Irving Azoff lead Ticketmaster," said Barry Diller, chairman of Ticketmaster, in the statement.

Ticketmaster's controlling stake in Front Line is a minority stake and it will share ownership with the management agency's current owner, Warner Music.

"Warner Music has been a great partner to Front Line Management Group," Azoff said in the statement. "Warner's commitment to artists remains extraordinary, and our roster of talent will continue to seek new opportunities to work together in the future."

Shares of Ticketmaster (Nasdaq: TKTM) dropped lower by $0.54, or 4.96%, to end at $10.35.

Shares of Warner Music (NYSE: WMG) gave back $0.48, or 11.16%, to close at $3.82.

The transaction is expected to close in the fourth quarter of 2008.

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