Dow says it is not in leveraged buyout talks

10 April 2007 01:46  [Source: ICIS news]

HOUSTON (ICIS news)--Dow Chemical said on Monday it has had no discussions about a leveraged buyout, referring to media reports that buyout firms and Middle East investors were preparing to take over the US chemicals giant in a $50bn (€37.5bn) deal.

The company's board of directors fully supports Dow's management team and its plan to continue enhancing value for all shareholders through the execution of its strategy, Andrew Liveris, Dow’s chairman and CEO said in a statement.

The company has had no discussion about a leveraged buyout, he added.

Dow had been the target of takeover speculation in the media in past months.

"The story that appeared over the weekend in the UK's Sunday Express is a follow-up to a report in the same newspaper a few weeks back, which was widely dismissed by US chemical industry securities analysts as lacking any substance, Liveris said.

"The analysts concluded that without management support, a buy-out of the company would be virtually impossible."

Analysts have been skeptical that Midland, Michigan-based Dow, which is highly vertically integrated, would make a suitable target for a buyout.

Liveris has also dismissed plans that Dow could be broken up.

"We have studied Dow's structure many times and each time concluded that we will generate the most value for our shareholders by remaining an integrated and diversified publicly traded chemical company," he said.

Dow’s shares on the New York Stock Exchange closed up 4.85% on Monday at $46.63.

($1 = €0.75)

Florence Tan contributed to this article.

By: Brian Ford
+1 713 525 2653

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