Settlement ends deal for Huntsman

Chemicals maker Huntsman Corp. has ended its $6.5-billion agreement to be taken private by Hexion Specialty Chemicals Inc. and agreed to a $1-billion legal settlement with Hexion’s private-equity owner, Apollo Global Management.

The settlement ends months of litigation between the companies, whose deal unraveled amid the global credit crisis and sparked a string of lawsuits.

Huntsman shares plunged $2.87, or 49.1%, to close Monday at $2.98.

Hexion, based in Columbus, Ohio, agreed to buy Salt Lake City-based Huntsman in July 2007 for $6.5 billion but then tried to back out, citing Huntsman’s deteriorating finances. A Delaware judge ordered Hexion to keep the buyout on track, essentially dismissing pleas that the combined company would not be solvent.

But Credit Suisse and Deutsche Bank, which had been slated to fund the deal, backed away in October as financial markets spiraled downward and credit markets dried up.