Huntsman Says Bank Trial To Proceed

(Reuters) – Huntsman Corp (HUN.N) said on Monday a Texas court cleared the way for the chemical maker to go forward with a multibillion dollar suit against Credit Suisse and Deutsche Bank stemming from its failed takeover by Apollo Management’s Hexion Specialty Chemicals unit.

The company said Judge Fred Edwards of the 9th District Court of Montgomery County, Texas, ruled in its favor on six motions brought by the banks.

Huntsman agreed to terminate its $6.5 billion agreement to be acquired by Hexion in December after months of litigation. Apollo and its affiliates paid $1 billion to settle the suit.

But the company has proceeded with its lawsuit against Credit Suisse (CSGN.VX) and Deutsche Bank (DBKGn.DE), the banks that had agreed to fund the Hexion deal, claiming the banks conspired with Apollo and interfered with Huntsman’s prior merger pact with Basell.

Huntsman said it will proceed to trial on June 8, claiming that the banks committed common law fraud in connection with its original agreement to merge with Basell, tortious interference with its merger agreement with Hexion, negligent misrepresentation, and civil conspiracy.

It said court’s rulings allow Huntsman to submit damages based upon the size of its $3.6 billion merger agreement with Basell and its $4.6 billion deal with Hexion.

A Credit Suisse spokesman declined to comment. Deutsche Bank representatives could not be immediately reached for comment.

(Reporting by Michael Erman; Editing by Richard Chang)