Dow Rohm and Haas

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DOW chemical company
The year 2009 was the most active an challenging year for Dow in its whole history. It was the turning point for the transformation to the” leading global specialty chemical and advanced materials Company”. On April 1 2009 DOW finally completed the acquisition of specialty chemicals maker Rohm and Haas after eight months “fight”. On July 10 2008 DOW pronounced to pay $78 per share to buy Rohm and Haas (current stock price on 9 July, $44, 83) because they expected more than $7 billion in pretax process from the joint venture, K-DOW, with a state owned Kuwait company. Due to the global financial crisis, the decrease of the oil prices and the governmental rating for the deal as “too risky” the Kuwait Company withdraw their $17.4 billion offer in December 2008. Dow was now unwilling to pay the $15.3 billion for Rohm and Haas and consequently tried to delay the process. With this situation, the dilemma of DOW was perfect, a global economic meltdown and a promise which DOW was not able to finish because of a deal break. The whole economy changed after the pronouncement in July that the second largest chemical company would like to by Rohm and Haas. Stock prices of chemical companies increased immense and the shareholder of Rohm and Haas expect a large profit from their shares especially in the ongoing global downturn, pressing the stock values to the bare bone. Rohm and Haas forced DOW to finish the promised acquisition but DOW never got a specific plan how to handle this complex and significantly changed situation. Just an email from the chairman of DOW explained that it would be better to wait till June 2009 in order to finish the deal. After they heard that Dow invested in different other projects it was simply too much for Rohm and Haas, as they could not understand why other deals were made but the acquisition was still delayed, so they started a litigation to enforce the merger. Rohm and Haas and DOW conducted several meeting to find a way...
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