Rohm & Haas: Dow Chem Won't Close $15.3 Billion Buyout By Deadline

   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; [e-mail]

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