The complicated legal fight over the implosion of the private equity buyout of Huntsman (NYSE: HUN) has been settled. The firm was able to get $632 million in cash and $1.1 billion in financing from Credit Suisse (NYSE: CS) and Deutsche Bank (NYSE: DB).

Basically, Huntsman claimed that these financial firms failed to uphold their responsibilities in backing the takeover from Hexion Specialty Chemicals, which was struck in July 2007 at $28 per share. Now, Huntsman is trading at $5.92, primarily because of the plunge in the global chemicals sector.

In the world of private equity and M&A, Henry Silverman is a giant. And, at 68 years old, he's getting back into the game. That is, according to a report in the Wall Street Journal [a paid publication], he has joined Apollo Management as the chief operating officer.

With the credit crunch and terrible economy, Apollo has suffered a variety of setbacks over the past two years, such as the bankruptcy of Linens 'N Things and the legal battle over Huntsman (NYSE: HUN). So, the firm definitely needs a boost.

It's been the key question for Huntsman Corporation (NYSE: HUN): Deal or no deal?

Now we know. This week, the company reached an agreement with its private equity sponsor, Apollo Management, to end its $6.5 billion buyout transaction.

For the past six months, the parties have been embroiled in heated litigation with Huntsman getting the edge as the Delaware court ruled that Apollo had to use best efforts to close the deal . As a result, Apollo's settlement is not cheap. The fees come to about $1 billion.

Although, it's a good deal for both parties. Apollo could have lost even more money if the merger agreement had been enforced. As seen with the collapse of the BCE (NYSE: BCE) deal, there is no appetite for multi-billion-dollar deals. And since Huntsman is in a highly cyclical business – specialty chemicals -- it would have likely made it difficult to justify a buyout.

The dispute is far from over, though. Huntsman is still pursuing a lawsuit with its bankers -- Credit Suisse and Deutsche Bank -- on the deal. In other words, Huntsman may even snag even more money from the broken deal.

Still, Wall Street isn't too thrilled. In today's session, Huntsman's shares are down 44% to $3.27 by midday trading.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

The potential collapse of the $10.6 billion buyout of Huntsman Corp. (NYSE: HUN) is hardly a shock.

For one thing, rising oil prices are crushing specialty chemical makers. Another thing is that the deal was announced almost a year ago, an eternity for the closing of a merger and acquisition. The Wall Street Journal argues that private equity shop Apollo Management and its Hexcion Specialty Chemicals Inc. are making a "novel" argument to get out of the deal.

"In a complaint filed in the Delaware Court of Chancery, Hexion said Huntsman's poor financial results -- increased net debt and lower-than-expected earnings -- would render the combined company insolvent," the paper said, adding that legal experts expect Huntsman to file a countersuit. Of course, shares of Salt Lake City-based Huntsman were plunging in premarket action and will likely open much, much lower. CNBC's David Faber points out that the Huntsman deal was "held out" to be the strongest of the LBO deals. That's scary.

In a press release, Huntsman CEO Peter Huntsman said, "These actions appear to be a blatant attempt to deprive our shareholders of the benefits of the Merger Agreement that was agreed to nearly a year ago." The company added that it intends to "vigorously enforce" its rights under the merger agreement and seek to consummate the merger under the agreed upon terms.

Huntsman Corp. (NYSE: HUN) is seeing the value of its stock destroyed in after-hours trading. This was one of those pending mergers that was old enough that many had forgotten it was even on the docket. Hexion Specialty Chemicals has announced that it has filed suit in Delaware to exit its contractual obligations to acquire the company.

The Hexion-led filed to terminate its proposed $10.6 Billion acquisition of Huntsman Corp. Hexion has said in this suit filed that it believes that the capital structure agreed to by both Huntsman and by Hexion for the combined company is no longer viable.

The reasons noted are because of Huntsman's increased net debt and its lower than expected earnings. Hexion notes that both companies are individually solvent but it believes that the merger's capital structure previously agreed to would render the combined company insolvent.

Keep reading at 247WallSt.com for the rest of the details and analysis.

CDW Corp. (NYSE: CDWC) -- volatility Flat as Arbitrage spread widens. CDWC is recently down $0.97 to $83.86. CDWC, a direct marketer of multi-brand information technology product and services, agreed to be acquired by Madison Dearborn for $7.3 billion cash or $87.75 on 5/30/07. CDWC September option implied volatility of 11 is near its 8-week average according to Track Data, suggesting flat risk.

Biomet Inc. (NASDAQ: BMET) -- volatility Flat into expected October close. BMET a designer, manufacturer and marketer of joint replacement products is recently trading at $45.05. A consortium including Blackstone Group (NYSE: BX), Goldman Sachs Group (NYSE: GS) and Kohlberg Kravis Roberts is expected to close on its purchase of BMET for $45.50 a share in cash in late October of 2007. BMET overall option implied volatility is at 14 is near its 26-week average according to Track Data, suggesting flat price risk.

Huntsman Corp. (NYSE: HUN) -- volatility increases as credit market liquidity tightens. HUN a large chemical company, controlled by private equity investors David Matlin and Jon Huntsman, received a bid from Apollo Management for $28 cash on 7/9/07. The deal is expected to close in the summer of 2008. HUN is recently down $0.65 to $24.91. HUN January option implied volatility of 18 is above its 3-week average of 14 according to Track Data, suggesting larger price fluctuations.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Spurning a $25.25-per-share offer from Dutch manufacturer Basell AF, the board of Utah chemicals company Huntsman Corporation (NYSE: HUN) has chosen instead to accept a bid from Hexion Specialty Chemicals, an arm of private equity house Apollo Management LP.

At $28 per share, the all-cash deal is valued at $6.5 billion. Huntsman had earlier agreed to Basell's offer of $5.6 billion, announced June 26. Basell had until yesterday to raise its offer but declined.

Hexion took on several penalties to get the deal done, covering half of Huntsman's $200 million fee for breaking off the Basell deal and agreeing to pay an 8 percent premium for the Huntsman stock if the deal remains unfinalized after nine months. Hexion had raised its bid slightly on Monday, a 2.8% increase over its previous offer of $27.25 per share.

Apollo said that if the deal clears, Hexion will gain notable depth in the Asian markets, expanding to 180 facilities worldwide. Its sales will top $14 billion.

Apollo established Hexion in 2005, combining Borden Chemical, Bakelite, Resolution Performance Products, and Resolution Specialty Materials.

Huntsman shares dropped $1.18, or 4.28 percent, to close at $26.39 on Thursday.

Today, buy-out firm Apollo Management raised its bid for Huntsman Corporation (NYSE:HUN) to $6.5 billion ($27.25/share), a 2.8% increase from a previous offer, according to Reuters. This rise can be attributed to bidding competition from the Dutch company Basell, which previously agreed to buy Huntsman for $25.25.

Apollo's offer is roughly 18x analyst estimates for full year 2008 earnings, and about 20x this year's earnings. This is in-line with the industry's 20x earnings multiple. Apollo is likely attempting to purchase this company to increase Huntsman's margins, as the company currently produces a weaker gross and operating margin than its industry - 14.6% gross margin vs. 20.8% for the industry, and 5.5% operating margin vs. 7% for the industry. Over the last several years, Huntsman has steadily decreased its liabilities, mostly attributable to cutting long term debt roughly in half.

I guess some deal makers don't take off for the Fourth of July. That appears to be the case with Apollo Management.

The firm has made a $6.35 billion offer for Huntsman Corp. (NYSE: HUN), a large chemical operator.

Huntsman appears to be a hot commodity. Keep in mind that on June 26, the company agreed to a $6 billion buyout from Basell AF.

Apollo has a lot of history in the chemical business. In fact, the firm plans to merge Huntsman with its Hexion Specialty Chemicals company. All in all, it looks like a pretty good fit.

It would also bring scale. While Hexion has sales under $5 billion, Huntsman generates sales of about $10.6 billion.

Basically, the Huntsman family wants to get liquidity for its charitable mission. And Apollo looks like it could give those efforts a nice boost.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.