Place bets for new merger price! My guess... $15.5
There will be no negotiation prior to the banks agreeing to fund at some level. Once a funding level is determined, the two companies could determine how to make up the difference. Otherwise what would be the point of changing the deal? That said, Hexion could cough up alot more cash with apollo as a partner directly as opposed to indirectly if the banks are willing to come along.
My take - no acquisition because the banks won't (can't) finance it. Solution - buy their way out of the deal with a cash payment of $5-10/share (Hun shares) funded by Apollo, the banks, Hexion. Then after the economy recovers HUN can be again placed on the market and sold to people with some integrity. Not a perfect solution but one that 1) guarantees HUN's survival and 2) keeps the banks from one more bad deal. Thoughts?