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Saul Sterman » Comments » HUN

  • Huntsman Buyout of Hexion is Dead [View article]
    Here's the link again (don't know why it didn't take the first time)
    seekingalpha.com/artic...
    Jun 20 06:35 am |Rating: 0 0 |Link to Comment
  • Huntsman Buyout of Hexion is Dead [View article]
    See:
    seekingalpha.com/artic...

    A lot of questions, after the fact though. The above linked balanced article is from before it happened. As you can see from the article, all your questions are answered.

    In a nutshell, the price was too high to begin with and the chances that a downturn would trigger a MAC were very real. This is why Matlin Patterson cashed out below the Basil offer price (competing first bid).

    Normally you are correct in stating that deals are structured so, that the chances of a severe downturn triggering a MAC are nil or close to it. This just wasn't the case here from day one.

    It pays to read Seeking Alpha!
    Jun 20 06:22 am |Rating: 0 0 |Link to Comment
  • Killed by the Huntsman [View article]
    See:
    seekingalpha.com/artic...

    Nice reporting, after the fact though. The above linked balanced article is from before it happened.
    Jun 20 06:12 am |Rating: 0 0 |Link to Comment
  • Huntsman Corporation: Is This Deal Real?  [View article]
    Hindsight, I should have shorted this one. Matlin Patterson made the smart move, taking a lower PPS and cashing out. As stated in the article, the price tag was just way too high and my concern over a MAC did materialize.
    Hexion may not have to pay a break-up fee. Also the CCU contract had different language regarding the financing so from a legal perspective the two are not the same.

    Saul Sterman
    CrossProfit
    Jun 20 06:07 am |Rating: 0 0 |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Regarding Huntsman (HUN), see article beneath 2008 chart here:
    www.crossprofit.com/vi...

    As stated in article, no position was taken in this arbitrage. As the title suggests, there were just too many question marks popping up. Upon this last earnings miss, Apollo called a MAC yesterday effectively nullifying the acquisition agreement. There may NOT be a break-up fee though HUN has gone to court!

    HUN should have negotiated a new price tag though the whole scenario is very problematic as certain shareholders already cashed out. This deal looks dead; funeral dance (courts) to follow.

    Saul Sterman
    Jun 19 08:12 am |Rating: 0 0 |Link to Comment
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