(Updates to add Dow Chemical confirmation, update share
price)
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.
Dow Chemical Chairman and Chief Executive Andrew Liveris said
while the company "remains interested" in finding a solution to
complete the acquisition, recent events have made closing
"untenable at this time."
The chemicals giant blamed "unacceptable uncertainties on the
funding and economics of the combined enterprise." Such factors
include the slump in chemicals demand that started in the fall as
last month's implosion of Dow's planned $17.4 billion joint venture
with Kuwait. The company was slated to get $9 billion through the
deal, money that Dow Chemical planned to put toward the Rohm &
Haas purchase, seen by Dow Chemical as a way to get into businesses
with higher margins and steadier earnings.
The news sent Rohm & Haas shares down 17% to $54.94 while
Dow Chemical gained 3.1% to $14.77.
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.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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