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.

Stocks were wishy-washy all day long, but had a very late-day comeback from earlier lows. Stocks were lower overseas as it turned out that the Madoff-fraud losses were actually going to cost some real companies some real money. The housing data left little to be desired for the six months ahead. The "whatever the bailout plan from the White House for the auto sector" was also another uncertainty today.

Here are today's unofficial closing bell levels:
DJIA: 8,564.53 -65.15 -0.75%
NASDAQ: 1,508.34 -32.38 -2.10%
S&P 500: 868.60 -11.13 -1.27%
Top Analyst Upgrades
Top Analyst Downgrades

Apple Inc. (NASDAQ: AAPL) was down all day on a rather late and untimely analyst downgrade this morning. Shares were down almost 5% at $93.70 right before the close.

Baidu.com Inc. (NASDAQ: BIDU) was down on a negative research call after Pali Research initiated coverage with a Sell rating in new coverage today. No one listened. Shares were up more than 5% around $118.00 right before the close.

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.

General Motors Corp. (NYSE: GM) and Ford Motor Co. (NYSE: F) may get help from the Bush administration. President Bush said in an interview today that "an abrupt bankruptcy for the autos could be devastating for the economy." He signaled he may use TARP funds for that, but didn't provide a timeline or other details. GM shares are up 4.8% in premarket, Ford's shares are up 2%. Shares of both opened about 3% higher.

Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) probably will report fourth-quarter losses this week on shrinking asset values and a decline in fees for businesses. But even the deep cost cutting measures the investment firms -- now turned banks -- may not help help shareholders enough as the companies face another year of slumping revenue. The demand for their services is and will continue to be limited in what is the worst financial crisis since the Great Depression. GS shares are down 2% in premarket trade.

Banco Santander (NYSE: STD), Nomura (NYSE: NMR) and Royal Bank of Scotland (NYSE: RBS) are among the victims ex-Nasdaq Chairman Bernard Madoff' $50 billion Ponzi scheme. Santander said its customers had an exposure of around $3.1 billion, while Japan's Nomura has an exposure of around $302 million. STD shares are down 1.5% and RBS shares up 1.7% in premarket trade.

[Update 10:00 am:
Huntsman Corp. (NYSE: HUN) shares were down about 35% a little after the open after it has ended its $6.5 billion agreement to be taken over by Hexion Specialty Chemicals Inc. and agreed to a $1 billion legal settlement.
Apple Inc. (NASDAQ: AAPL) shares were down about 4% a little after the open on a downgrade. Goldman Sachs downgraded the iPhone and Mac maker to Neutral from Buy due to deteriorating consumer spending.
JPMorgan (NYSE: JPM) shares slumped nearly 6% after a Merrill Lynch analyst downgraded JPM to Underperform from Neutral.
Honeywell (NYSE: HON) shares gained nearly 7.5% after the manufacturer affirmed a lower 2009 outlook and said it expects profits to fall 6% to 16% as the deepening global recession hits markets it serves.]

Those who were hoping for an Obama victory lap on the floor of the NYSE only got their toes bitten by bears. Weakening economic data and the market preparing for very weak retail sales numbers took away any shot of major gains today, and you can always blame major profit taking after a multi-day rally phase we saw.

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Arcelor Mittal (NYSE: MT) was slapped after the global steel giant gave guidance for EBITDA in Q4 at $2.5 to $3.0 billion. This is being taken as an earnings warning with 2008 expectations being implied at roughly $24.2 billion as being more than 10% under consensus expectations. Shares were down 20% at $25.30 on above average volume shortly before the close.

Greenhill & Co., Inc. (NYSE: GHL) was down after it filed to sell up to 3.5 million shares of common stock in a secondary offering. Shares were down over 11% at $61.61 shortly before the close.

Today ended up being another one of those days that almost could have been special. Despite futures being lower all morning after the Asian markets slid into oblivion with Japan at 26-year lows, U.S. markets recovered on less-bad housing sale data and an S&P report that said the Christmas of 2008 shopping season may only be flat compared to 2008. Both were bad, but very acceptable for the current poor sentiment. Unfortunately, late day selling from redemptions and the "re-emergence of fears" took hold.

Here are today's unofficial closing bell levels:
52-WEEK LOWS
Top 10 Analyst Calls
Technology Sector Upgrades

Dillard's Inc. (NYSE: DDS) was up over 30% at $4.48 in today's final minutes of trading. Management bought shares and insiders want new management.

Humana (NYSE: HUM) almost didn't make sense as far as the trader reaction to earnings is concerned. The health insurer posted earnings at $1.49 EPS vs. estimates of $1.47 and gave guidance of $1.00 to $1.10 after a $0.10 item vs. $1.20 estimates. For 2009, it sees earnings at $5.90 to $6.10 vs. $5.85 EPS estimates. That gives a forward P/E ratio of under 7, yet shares were down 14% at $31.12 right before the close of trading.

Back in the summer of 2007, Apollo Management LP struck a typical private equity buyout. The deal called for paying $6.5 billion for Huntsman (NYSE: HUN), a chemicals company. In fact, the deal provided lots of synergy since Apollo already controlled a variety of similar businesses (through an entity called Hexion).

Well, of course, this was the peak of the private equity boom – and the credit markets began to unwind fairly quickly. What's more, the fundamentals of Huntsman started to weaken.

As a result, Apollo tried to extricate itself from the deal. And this meant a tough litigation fight.

Of course, this can be pretty a dicey thing. That is, the Delaware court ruled against Apollo and there was an order to get the deal done.

Yet again, this was bad news for Apollo (which has other faltering deals, such as Linens 'N Things). Actually, some of the top private equity firms have been taking some major hits lately, such as the TPG Group with its Washington Mutual (NYSE: WM) disaster.

So, to deal with the court ruling, Apollo has agreed to pony up $540 million to close the Huntsman transaction. Interestingly enough, Apollo has also agreed to give up its lucrative fees (amounting to $100 million or so).

This means that Huntsman should be on firm footing (especially in terms of its solvency). And, something else: the banks on the deal – which include Credit Suisse and Deutsche Bank – will have to raise the necessary funding, which will likely mean losing several billion on the transaction.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He is also the founder of BizEquity, a valuation website

Volatility is becoming the market's new name. Much of yesterday's 700+ point drop in the DJIA was largely erased as the DJIA was up more than 400 points for most of the last hour today. The markets weren't driven by a bailout package. It was the BELIEF that a new passage would get passed by the weekend. Consumer confidence did come in stronger than expected, although the Conference Board noted that the data cut off date was September 23, before the last round of malaise hit.

Here were today's unofficial closing bell levels:
DJIA 10,862.61 (+497.16; +4.80%)
NASDAQ 2,082.33 (+98.60; +4.97%)
S&P500 1,163.93 (+57.54; +5.20%)
10YR T-NOTE 3.827% (+0.195)
52-WEEK LOWS
TOP UPGRADES, many moved here.
TOP DOWNGRADES

Abercrombie & Fitch Co. (NYSE: ANF) rose after an analyst upgrade this morning. The young adult clothing company was raised to an "Outperform" at FBR. With shares on a year low and having sold off nearly 60% and a P/E ratio of well under 10.0, that brought some interest from Wall Street. Shares were up over 11% at $39.70 in today's final minutes.

Huntsman Corp. (NYSE: HUN) was one monster mover today. A judge ruled that the private equity firms that walked away could not claim the material adverse change. Shares were up a whopping 70% at $12.59 in today's final minutes.

Intel Corporation (NASDAQ: INTC) rose on a call out of Piper Jaffray as one of several key technology upgrades. The firm raised its Neutral rating to a Buy rating with a $22.00 price target. Shares were up 6% at $18.36 in the final minutes of the trading day.

CMGI Inc. (NASDAQ: CMGI) is now ModusLink Global Solutions, Inc. (NASDAQ: MLNK). Shares actually rose over 12% to $10.00 by the final minutes of the trading day.

Conexant Systems Inc. (NASDAQ: CNXT) rose sharply after the communications chip company raised its guidance to EPS of $0.24 to $0.26 vs. $0.15 estimates. Imagine a chip company raising guidance in today's climate. Shares were up 42% at $4.10 in the final trading minutes today on more than 5-times volume.

Rolm and Hass (NYSE:ROH) is up 70% on a buy-out bid from Dow Chemical (NYSE:DOW)

Ruby Tuesday (NYSE:RT) is trading higher by almost 20% on news that its earnings were better than expected.

Huntsman (NYSE:HUN) is up over 15% on news that a Delaware court will expedite hearing a case over a broken buy-out of the company.

Dow Chemical is down 8% on news of its planned buy-out of ROH.

Zumiez (NASDAQ:ZUMZ) is off about 8% on weak same-store sales.

Stocks may trade differently in the pre-market than in the regulare session.

Douglas A. McIntyre is an editor at 247wallst.com.

This week, we've seen two major buyout deals come undone: the $6.1 transaction for Penn National Gaming Inc. (NASDAQ: PENN) and TPG's play for Bradford & Bingley. In fact, according to FactSet Research, about 20% of leveraged buyouts (LBOs) since mid-2007 have been terminated.

Despite all this, some deals are getting done. Perhaps the most notable is the BCE (NYSE: BCE) LBO. BCE has reached an agreement with its private equity sponsors and banks to close its $51 billion LBO. This will represent the biggest buyout in history.

Now, there are some wrinkles. The closing date will be extended to December and there will not be any dividend payments for the rest of the year. The break-up fee was also upped from $1 billion to $1.2 billion.

Yet, the fact is that the price tag will remain unchanged (at $42 per share). No doubt, this is a big feat, especially in light of the credit crunch.

Apparently, there was much discussion about renegotiating the price. Then again, the prospects of massive litigation were daunting, as we have seen in a variety of other deals such as with Clear Channel, SLM (NYSE: SLM) and Huntsman Corp. (NYSE: HUN).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

MOST NOTEWORTHY: Symantec, Cardinal Financial and BP Plc were today's noteworthy upgrades:

• ThinkPanmure upgraded Symantec (NASDAQ:SYMC) to Buy from Accumulate based on improved execution, stable growth in core business, and ramping competitive position in some high-growth businesses.
  
• Baird upgraded Cardinal Financial (NASDAQ:CFNL) to Outperform from Neutral based on valuation, the company's favorable credit risk profile in Northern Virginia, and its excess capital position.
  
• Societe Generale raised BP Plc (NYSE: BP) to Hold from Sell as it believes the bad news is priced into shares and earnings could be better than expected.

OTHER UPGRADES:

• Alcatel-Lucent (NYSE:ALU) was upgraded at Merrill Lynch to Neutral from Underperform.
  
• Jefferies lifted Hunsman (NYSE: HUN) to Hold from Underperform.
  
• Teva Pharmaceutical (NASDAQ:TEVA) was upgraded to Overweight from Neutral at HSBC.

Stocks were up today, but less than you might imagine after a large drop of more than $4.00 on oil in late-day prices. So much for Goldman Sachs' raising oil target again today, as well as lifting the oil services sector and upping price targets for some of the sector's stocks .

Here are today's unofficial closing bell index levels:

• DJIA 12062.93 (+33.87)
• S&P500 1342.86 (+5.05)
• NASDAQ 2462.07 (+32.36)
• 10YR T-NOTE 4.199% (+0.045%)
• 52-Week Lows
• Top 10 Analyst Calls

Evergreen Solar Inc. (NASDAQ: ESLR) was one of the huge winners today with shares up over 20% at $12.33 in today's final minutes. The company announced a huge second round contract that added significantly to its backlog.

Huntsman Corporation (NYSE: HUN) imploded after its private equity buyout was officially notified as "being killed" by the buyers, and shares were down 38% at $12.79 at the end of the day. Mark that as an all-time low.

MOST NOTEWORTHY: UBS AG, Coventry Health, Express Scripts and Medco Health were today's noteworthy downgrades:

• Credit Suisse downgraded shares of UBS (NYSE:UBS) to Neutral from Outperform as they believe UBS will have difficulty rebuilding the franchise and do not expect a quick recovery for its private bank unit.
  
• Wachovia downgraded Coventry Health (NYSE:CVH) to Market Perform from Outperform citing concerns regarding visibility around higher than expected inpatient/outpatient costs following reduced 2008 guidance.
  
• UBS downgraded Express Scripts (NASDAQ:ESRX) and Medco Health to Neutral from Buy citing the Pfizer (NYSE:PFE)/Ranbaxy settlement, which reduces the likelihood of a generic Lipitor launch in 2010.

OTHER DOWNGRADES:

• Goldman downgraded ENI SpA (NYSE:E) to Neutral from Buy and removed the stock from the Pan-Europe Conviction Buy List.
  
• Huntsman (NYSE:HUN) was downgraded to Underperform from hold at Jefferies.
  
• Commercial Metals (NYSE:CMC) was cut at Citigroup to Hold from Buy.

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.