hexion specialty chemicals

Huntsman and Hexion Specialty Chemicals said that their proposed merger will not close on schedule because the banks committed to financing the deal are unwilling to lend the necessary money.

• Hexion Specialty Chemicals, Inc. announced today that late last night Hexion received correspondence from counsel to affiliates of Credit Suisse (NYSE: CS) and Deutsche Bank (NYSE: DB) stating that the banks do not believe that the solvency opinion of American Appraisal Associates and the solvency certificate of Huntsman Corporation's (NYSE: HUN) Chief Financial Officer meet the condition of the commitment letter, and stated that as a result the banks do not plan to fund the proposed closing of the merger scheduled for this morning.

The Huntsman chemicals company says two banks providing funding for its disputed takeover by Hexion Specialty Chemicals have backed out of the deal.

Hexion Specialty Chemicals is moving to complete its $6.51 billion buyout of Huntsman with help from Apollo Management.

Hexion Specialty Chemicals received a $540 million pledge to help it close its fiercely contested takeover of Huntsman Corp.

StreetInsider.com Morning Movers: Huntsman Corp. (NYSE: HUN) 40% HIGHER; Hexion Specialty Chemicals said it is proceeding expeditiously to seek to close its merger with Huntsman.

Hexion said, to assist it in closing the merger, affiliates of Apollo Management, L.P. have agreed to make a capital contribution of $540 million to Hexion.

National City Corporation (NYSE: NCC) 22% HIGHER; Reports National City (NCC) is in merger talks with a number of banks.

Ruby Tuesday (NYSE: RT) 12% LOWER; reports Q1 EPS of $0.01, versus the analyst estimate of $0.11.

Sovereign Bancorp (NYSE: SOV) 71.7% HIGHER; Bounces after dropping 72% yesterday on fears after the fall of Wachovia.

Also, the stock was upgraded at Fox-Pitt to Outperform and at Sandler O'Neill to Hold. Huntsman Corp. (NYSE: HUN) 60.1% HIGHER; announced the decision of the Delaware Court of Chancery to enter judgment in favor of Huntsman Corporation denying all declarations sought by Apollo Management, L.P. and Hexion Specialty Chemicals, Inc.

StreetInsider.com Morning Movers: Huntsman Corp. (NYSE: HUN) 56% HIGHER; announced the decision of the Delaware Court of Chancery to enter judgment in favor of Huntsman Corporation denying all declarations sought by Apollo Management, L.P. and Hexion Specialty Chemicals, Inc. in their suit requesting that the Chancery Court excuse Hexion from its obligation to consummate the pending transaction.

Sovereign Bancorp (NYSE: SOV) 21% HIGHER; Bounces after dropping 72% yesterday on fears after the fall of Wachovia.

There was also at least two upgrades this morning.

Chemical maker Huntsman Corporation says an outside appraisal firm believes a proposed $6.5 billion buyout by Hexion Specialty Chemicals would result in a solvent combined entity.

StreetInsider.com Notable Mergers and Acquisitions of the Day:

• Huntsman Corporation (NYSE: HUN) yesterday disclosed that it sent a letter to Hexion Specialty Chemicals and Apollo Management VI, L.P. requesting their consent to share Hexion confidential information with certain potential investors.
  
  In Juny, Apollo's Hexion filed suit versus Huntsman to terminate their $10.6 billion merger. Huntsman was slammed on the news.