Apollo, Partners Sued for Fraud

Huntsman Corp. is suing Apollo Management and its two partners for fraud after the private equity group backed out of a deal to buy the chemicals company for $6.5 billion.

Salt Lake City-based Huntsman seeks a Texas jury trial for damages exceeding $3 billion, plus additional punitive damages.

Last Wednesday, Apollo’s Hexion unit said it no longer believes it can buy Huntsman, citing the company’s financial deterioration. Huntsman alleges Apollo falsely represented its commitment to the deal in order to get the company to terminate a previous buyout agreement with Dutch manufacturer Basell AF.

Huntsman also plans to contest allegations made about its financial performance in the suit.

AP Business Writer Kristen Lee in New York.