02 December 2008 16:17 [Source: ICIS news]
By Joseph Chang
NEW YORK (ICIS news)--Dow Chemical will not look to renegotiate the terms of its pending acquisition of ?xml:namespace>
“Unless we were given something from the regulators, there’s no reason to do that,” Liveris said.
“That creates a lose-lose situation. Right now, we’re going to make the deal a win-win.”
In July, Dow agreed to pay $78/share for Rohm and Haas, a premium of 74% over its previous stock price of $44.83.
Since then, the value of just about every chemical company, including Dow, has tumbled. Rohm and Haas closed at $70.82/share in New York trading on Monday.
Dow’s stock price initially fell $1.50, or 4.4% to $32.46 on the deal, but since then has fallen to below $18.
“Adverse business conditions are not a reason to break up a deal, especially as this is a deal for the ages,” said Liveris.
“People can look at the negative side and say things changed a lot, but in a way, that’s just too bad. Cycles come and go, but a 99-year-old company like this doesn’t come up for sale too often.”
While the price of Rohm and Haas on the public market today would assuredly be lower without the Dow deal, “they might not be selling [at those levels],” so it was a moot point, said Liveris.
“Unless you’re buying distressed assets, timing [doesn’t play much of a factor]. Quality assets selling at a bargain price doesn’t exist.”
Dow has had more than 700 meetings with Rohm and Haas since July to discuss integration and growth strategies, said Liveris.
“This is like beachfront property in
“I’m never going to make anyone comfortable that the July price was not too high a price, because in today’s reality, of course it is,” he added.
“But I’m homing in on the quality of the business and what we can do to fulfil the economics. I’m confident we can do that.”
($1 = €0.79)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections