Well, the banks are off the hook now (see this article at Marketwatch.com). Looks like Hexion is gonna be in some deep financial straights if it has to pony up all those millions if the deal goes south.

Regardless, I no longer have my status for this one as a Buy.  I do own shares in HUN (see my previous posts) and now need to assess if the shares look okay for the long term (eg. is HUN a company I would invest in if there was no M&A arbitrage opportunity).  I’ll do some more research and see.  If not, I will sell soon and take the loss.  For now, I am holding the shares.

M&A status: SELL.

Backstory:

I thought this tidbit was rather funny (from a Reuters article):

Arbitrage traders, who have closely followed the deal, packed into Friday’s courtroom. Most remained glued to their blackberries throughout, keeping an eye on Huntsman’s share price. This annoyed Justice Bransten, who reprimanded the court audience at the end of the morning’s hearings for the continual typing.