20 January 2009 18:02 [Source: ICIS news]
(recast with current euro conversion)
HOUSTON (ICIS news)--The late fees connected to Dow Chemical's delayed $18.8bn (€14.3bn) merger with Rohm and Haas has exceeded $25m as of Tuesday, according to the terms of the agreement. Dow had a 10 January deadline to close the deal, according to the merger agreement. For each day after the deadline, Dow will pay Rohm and Haas about $3.35m in late fees, according to the agreement.
The deal is still waiting approval from US regulators, according to a spokeswoman from Rohm and Haas.
Dow was not immediately available for comment. However, it has said in the past that it would not comment on a deal that is still awaiting approval from regulators.
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 from K-Dow.
Dow's offer for Rohm and Haas comes to $78/share.
Shares of Rohm and Haas traded at $59.18 as of 11:58 hours New York time (16:58 GMT) on the New York Stock Exchange, down 2.31%.
Dow shares traded at $14.25, down 5.19%.
($1 = €0.76)
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