Dow bid sends Rohm and Haas up 65%
Dow Chemical has agreed to purchase Rohm and Haas for $15 billion.
Dow representatives say the deal will allow the company to enter the market for specialty chemicals which earn higher margins.
The two chemical giants have been competing for years. While Rohm and Haas may not have been searching for a buyer, I don’t think any board could resist a deal like this: The price tag represents a 74 percent premium to yesterday’s closing price of $44.83 per share.
News of the deal sent shares of Rohm and Haas up 65 percent before the market opened, representing an increase of $29 per share.
Looks like someone knew about this before the rest of us!
Tags: acquisition, dow chemical, rohm and haasRelated Stories
POSTED IN: Acquisitions, Corporate, Investment, Market, News
4 opinions for Dow bid sends Rohm and Haas up 65%
Vince Piovoso
Jul 11, 2008 at 11:39 am
I’m not too surprised these stock increase occurred. In finance 312 we learn that often times when a company proceeds with a takeover offer stock price for the company being taken over increase greatly. I just wish I had been a shareholder of Rohm and Haas.
Chris Hayes
Jul 12, 2008 at 2:41 pm
After a takeover the stock usually sky rockets with people thinking other people know something they don’t. However usually the price levels off and people are stuck wondering why they invested in this company. We will see how this situation turns out later in the year and if people made the right decision to buy.
Shannon Brown
Jul 12, 2008 at 10:57 pm
Has anyone heard about this company besides the Dow? I’m sure somebody has but not alot. It seems that certain people have dibs on the new exclusive information. If everyone had information like that dow would probably had a tougher time bidding against other bidders.
John McMillan
Jul 13, 2008 at 8:17 pm
That is a remarkable premium. If Rhom and Haas was searching for a buyer why did Dow pay so much? Seems like they got their financing from Birkshire Hathaway and others. Many other intersting facts about this transaction at “http://newswire.rohmhaas.com/portal/site/rohmhaas/index.jsp?ndmViewId=news_view&ndmConfigId=1009992&newsId=20080710005495&newsLang=en”.
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