Citadel to monitor dispute between Huntsman, Hexion

By Lisa Kerner

Charlotte, N.C., Aug. 1 - Huntsman Corp. investor Citadel LP and its affiliates said they will monitor a variety of investment considerations and the company's operations in light of Huntsman's public dispute with Hexion Specialty Chemicals, Inc., it was reported in a schedule 13D filed with the Securities and Exchange Commission.

Litigation related to the dispute has begun in several jurisdictions, the filing noted.

The 7.95% shareholder may continue to discuss Huntsman's operations and prospects with management, the board, other shareholders and others who may take actions intended to facilitate the closing of the merger.

On July 12, 2007, Hexion agreed to acquire Huntsman in an all-cash transaction valued at approximately $10.6 billion, including the assumption of debt. Huntsman shareholders approved the deal in October 2007.

In June, Hexion said the capital structure agreed to for the combined company is no longer viable - due to Huntsman's increased net debt and its lower-than-expected earnings - and that completing the merger would render the combined company insolvent. The company also declined to extend the merger agreement.

Based in Columbus, Ohio, Hexion makes thermoset resins. Huntsman is a Salt Lake City manufacturer of differentiated chemicals and pigments.

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