Merger deadline passes with no word from Dow/Rohm and Haas

12 January 2009 19:05  [Source: ICIS news]

HOUSTON (ICIS news)--There was no word on Monday on whether Dow Chemical met a deadline to close its $18.8bn (€13.9bn) merger with Rohm and Haas.

If Dow missed the deadline, it would start paying additional fees of roughly $3.35m/day.

Dow would not comment on the deal since it was still under US regulatory review. 

Rohm and Haas was not immediately available for comment.

The cost structure of the merger became strained after another Dow deal fell through

Under that separate deal, Dow would have established the K-Dow Petrochemicals joint venture with Petrochemicals Industries Co (PIC) of Kuwait. Had the joint venture closed, Dow would have received $7.5bn in cash from PIC and a $1.5bn cash distribution fro K-Dow.

Dow's offer for Rohm and Haas comes to $78/share.

As of 13:23 hours New York time (19:23 GMT), shares of Rohm and Haas traded at $63.26, up 2.2%, on the New York Stock Exchange. Dow traded at $15.76, down 0.32%.

($1 = €0.74)

For more on Dow or Rohm and Haas, visit ICIS company intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: Al Greenwood
+1 713 525 2645

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