DOW JONES NEWSWIRES
Rohm & Haas Co. (ROH) plans to pursue "all available
alternatives" after saying Dow Chemical Co. (DOW) no longer plans
to close its pending $15.3 billion acquisition on or before
Tuesday, the deals deadline.
The announcement, which comes three days after the deal was
blessed by federal regulators, marks the latest planned takeover to
be overwhelmed by market and economic conditions.
The news sent Rohm & Haas shares down 15% to $15.74 per
share in pre-market trading, while Dow chemical shares rose 5.4% to
$5.44.
Dow Chemical had no immediate comment.
The clearance by federal regulators raised pressure on Dow
Chemical to quickly close or renegotiate the deal that has been
criticized as too expensive and risky. Many were expecting the
deal, if it were to be completed, to be renegotiated at a lower
price since chemical demand has tumbled in recent months.
New questions were raised about the Rohm & Haas acquisition
last month after Kuwait's top petroleum-policy council abandoned a
$17 billion joint venture with Dow Chemical, from which Dow was
going to finance the takeover. The purchase has been seen by Dow
Chemical as getting into businesses with higher margins and
steadier earnings.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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