Dow shares spike on joint venture rumour

16 March 2007 00:10  [Source: ICIS news]

NEW YORK (ICIS news)--Shares of Dow Chemical shot up more than 6% during Thursday in heavy trading in an initial reaction to an overseas report that it has agreed to set up a joint venture (JV) with a top Indian petrochemical company for its underperforming commodity business.

Shares on the New York Stock Exchange closed at $45.80, up $2.42 (5.57%). It was one of the five most active issues traded on the exchange.

India’s Economic Times said that talks over a JV with Reliance Industries were at "an advanced stage" and cited unnamed sources as saying that Reliance chairman Mukesh Ambani and other company officials were set to meet with Dow chief executive Andrew Liveris and other executives for a final round of negotiations.

A Reliance spokesman reportedly denied a deal was in the offing, while Dow spokesman Andrew Wood refused to comment on the rumours, citing company policy.

The latest report comes on the heels of the circulation of several rumours over the past few weeks concerning a possible buyout of the US chemical major.

(Look for the full story on Dow in the 19 March issue of ICIS Chemical Business Americas.)

By: Ed Zwirn
+1 713 525 2653

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