13 January 2009 00:55 [Source: ICIS news]
(adds comments from Rohm and Haas)
HOUSTON (ICIS news)--Rohm and Haas said on Monday that Dow Chemical will start paying fees of roughly $3.35m/day (€2.48m/day), after Dow failed to meet a Saturday deadline to close its $18.8bn merger.
The fees were stipulated under the companies' merger agreement.
Dow would not comment on the deal since it was still under US regulatory review.
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 Petrochemical 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 16:02 hours New York time (22:02 GMT), shares of Rohm and Haas traded at $63.55, up 2.7%, on the New York Stock Exchange. Dow traded at $15.76, down 0.32%.
($1 = €0.74)
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