Dow and Rohm & Haas reach agreement again
March 10, 2009
MIDLAND, MI — After more than a month-long stall in deliberations, Dow Chemical Company has once again agreed to acquire specialty chemical manufacturer Rohm & Haas for the original price of $15.3 billion in cash, according to The Philadelphia Inquirer.
The agreement was reached after Haas trusts in Philadelphia and hedge-fund operator John Paulson, the two largest shareholders in Rohm & Haas, put up $3 billion to help close the deal, the story stated.
The settlement says the merger must close April 1, and also settles the lawsuit Rohm & Haas filed in Delaware''s Court of Chancery in late January seeking to force Dow Chemical to honor its July merger agreement, the story noted.
Dow chief executive Andrew Liveris said: "The next three weeks will have to drive how we put this together. [We are] relooking at how we put this model together because of the new reality [of a bad economy]."
Dow announced that it would cut an additional 3,500 jobs from the combined corporate entity and close research labs and plants, the story added.
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