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Hexion To Close Huntsman Deal

Apollo Management, Hexion Specialty Chemicals' parent, will pump $540 million into Hexion to help close the $6.51 billion deal for Salt Lake City-based Huntsman.

NEW YORK (AP) -- Hexion Specialty Chemicals is moving to complete its $6.51 billion buyout of Huntsman with help from Apollo Management.

Apollo, Hexion's parent, will pump $540 million into Hexion to help close the deal for Salt Lake City-based Huntsman. It will also waive its contractual fee and suspend monitoring fees for three years, provided the deal goes through.

Columbus, Ohio-based Hexion had tried to back out of the acquisition — first announced in July 2007 — as recently as last month, but a Delaware court said the company had "knowingly and intentionally" violated several of its covenants under the deal and must go through with the buyout.

Shares of Huntsman jumped $2.54, or 28 percent, to $11.62 in morning trading.