Dow, Rohm and Haas still strong match - Liveris

23 October 2008 22:53  [Source: ICIS news]

Dow CEO Andrew LiverisHOUSTON (ICIS news)--US major Dow Chemical's $18.8bn (€14.7bn) acquisition of Rohm and Haas is still a good deal despite sharp declines in stock prices, Dow CEO Andrew Liveris said on Thursday.

Dow's offer amounts to $78 for each share of Rohm and Haas. Rohm and Haas traded on Thursday at $69.25/share on the New York Stock Exchange, well below Dow's offer.

"The equity markets are disconnected from true valuations of companies," Liveris said in a earnings conference call with analysts. "Just look at our dividend yield to give you an indication of how ludicrous valuations are."

Had Dow waited to make its offer, Rohm and Haas would not have sold itself for such a low price, Liveris said.

"Companies like ours have been unfairly marked down, but I'm not going to moan about that," he said. "We are just going to deliver the value we talked about when we announced the deal."

As it is, Liveris said the rationale behind the acquisition remains intact.

"There's a lot of Monday morning quarterbacking out there," he said. "I'm not listening to any of it."

Shares of Dow traded at $24.43 on the New York Stock Exchange, up 10.49% after the earnings beat Wall Street expectations.

Dowl’s third-quarter earnings per share (EPS) slumped 29% year-on-year, excluding certain charges and gains, as profits from its hurricane-hit performance plastics and basic chemicals businesses tumbled, the company said on Thursday

($1 = €0.78)

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By: Al Greenwood
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