UPDATE:=Rohm & Haas: Dow Chem Won't Close Buyout By Deadline

(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; [e-mail]

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.