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Oil and gas E&P company Denbury Resources Inc. (NYSE:DNR) will be added to the S&P 500 after trading closes on April 1st. Denbury replaces Rohm and Haas Co. (NYSE:ROH), which Standard & Poor’s expects to be purchased by Dow Chemical Corp. (NYSE:DOW).
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Posts for Ticker ‘ROH’
Denbury Resources Hits the Big Time (DNR, ROH, DOW)
A Renaissance for Big Acquisitions
A large part of the money that was made by banks and investment banks from 2004 through most of 2007 was made from mergers and acquisitions. When the credit markets fell apart, the financing for these deals disappeared. Then the economy got so bad that buying companies became secondary to staying in business through the downturn Read More
Media Digest 3/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
According to the head of the FDIC, a “bad bank” system could jumpstart the US economy.
Reuters reports that some economists believe that the US economy will start to rebound in the second half of the year.
Reuters says that the Dow Chemical (DOW) merger with Rohm and Haas (ROH) will now go through.
Reuters reports that Eli Broad who invested in AIG (AIG) has given up hope that the company will recover.
Reuters reports that the US is weighing future aid for Citigroup, if needed. Read More
Rohm & Haas and Dow Deal Back At $78? (ROH, DOW)
The Rohm & Haas (NYSE: ROH) acquisition by Dow Chemical (NYSE: DOW) is actually going to close if CNBC’s David Faber is accurate. Faber just reported some merger news that may seem out of place for the economy today. More importantly, he said that the $78.00 per share cash buyout is going to stand for the common holders of Rohm & Haas.
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Media Digest 3/9/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
According to Reuters, Japanese gloom deepened and the government encouraged more coordination with the US.
Reuters reports that AIG (AIG) got billions of dollars from the government that it paid out to other firms.
Reuters reports that Exxon (XOM) will try to take a big role in Iraq’s oil sector.
Reuters says that Lloyd will meet with investors on its plan to have the UK government take a majority stake in the company Read More
Odd Merger: Middle East & Chemicals, Redux (NCX, ROH, DOW)
Nova Chemicals Corp. (NYSE: NCX) is the largest percentage winner on the NYSE today. It is up about 300%. Yep 300… The company is being acquired in a deal involving the Middle East. Does this sound familiar?
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Rohm And Haas (ROH) Back On Track?
It has probably occurred to the management at Dow Chemical (DOW) that it can not win a suit brought by Rohm and Haas (ROH) to force Dow to complete its buyout.
The early read on the merger agreement was that Dow could not get out and was probably facing billions of dollars in damages. Read More
Media Digest 2/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
According to Reuters, the White House is finishing a bank rescue package , that involves investment by private equity.
Reuters reports that a poll of analysts cut Q2 earnings forecasts.
Reuters reports that Amazon (AMZN) launched a new Kindle Read More
Dow Chemical (DOW) Dissembles About Rohm And Haas Deal
Dow Chemical (DOW) continues to dodge the issue of why it will not close the transaction to buy Rohm and Haas. (ROH). Most analysts think that when a joint venture with Kuwait fell though Dow lost about $7 billion in payments that would have been part of the Middle East transaction. Read More
Media Digest 2/6/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
According to Reuters, Democrats say that the Senate will pass the stimulus bill today.
Reuters reports that Moody’s cut Toyota’s (TM) rating for the first time in 10 years.
Reuters writes that estimates are that the US lost 525,000 jobs in January.
Reuters reports that investments in AIG (AIG) and Citigroup (C) bought the government the least value for its money among financial firms it has given money.
Despite Poor Governance In The Auto And Finance Industies, Boards Refuse To Act (AAPL)(BAC)(C)(F)(GM)(DOW)(ROH)
Much of the crisis in the banking industry has been blamed on the inaction of the boards of directors at companies including Bank of America (BAC) and Citigroup (C). Some of Citi’s most prominent members have left, probably not entirely of their own volition. The board at B of A has been savagely attacked over the last several weeks because it did not insist on better due diligence in the buyout of Merrill Lynch and for allowing large bonuses to be paid to employees after the firm had taken TARP money.
Rohm And Haas (ROH) Fairly Accuses Dow Chemical (DOW) Of Bad Faith
Rohm and Haas (ROH) has now made it public that Dow Chemical (DOW) has a binding obligation to buy it, and that questions of whether the environment for chemical companies has gotten worse has nothing to do with consummating the transaction.
The Rohm argument is sound
Dow Chemical’s board, which is facing reasonable questions about its integrity, got a letter from Rohm yesterday.
Media Digest 1/28/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
According to Reuters, the confidence of CEOs at Davos is low as the recession and credit crisis deepen.
Reuters reports that Yahoo! (YHOO) slightly beat earnings but posted a weak forecast.
Reuters reports that the House is close to passing the economic recovery bill.
Dow Chemical (DOW) Runs Out Of Options
Dow Chemical (DOW) was supposed to buy Rohm & Haas (ROH). Now, it may be the other way around. Dow can’t close the deal and Rohm is suing to get it finished.
Dow has quickly gone from being viewed as one of the most aggressive multinationals in the world to a firm which is in very deep trouble. The Rohm deal was a bold play for combining two similar companies to create big potential cost savings and a broad product line for common customers.
Nero Burns Rohm & Haas (ROH, DOW)
Rohm & Haas Co. (NYSE: ROH) is probably upsetting some who chased the move on Friday who were hoping its buyout might actually close. But this morning the company announced that it has been advised by Dow Chemical (NYSE: DOW) that Dow does not intend to close the pending acquisition on or before the January 27 deadline now that regulatory approval has been given.
Standard & Poor’s Downgrades Dow Chemical’s (DOW) Credit Rating to ‘BBB’
Yesterday evening, Standard & Poor’s Ratings Services lowered its corporate credit and senior unsecured ratings on Dow Chemical Co. (NYSE: DOW) to ‘BBB’ from ‘A-’. The long-term ratings on Dow Chemical and the ‘A-2′ commercial paper rating remain on CreditWatch with negative implications.
Standard & Poor’s revised the CreditWatch implications on the ‘BBB’ long-term ratings of Rohm and Haas Co. (NYSE: ROH) to negative from developing. Rohm and Haas’ ‘A-2′ short-term ratings remain on CreditWatch with negative implications.
InBev May Own Anheuser-Busch (BUD) In Short Order
Anheuser-Busch (BUD) may finally be admitting that it cannot get its shares up from $50 to the InBev bid of $65, even it its cuts costs and sells assets. BUD shares have sold at the lower price for too long. The beer business is not that good.
Now, it appears that InBev will raise its price. The BUD board can save face and shareholders can get a good deal for once.
According to The New York Times, "Exact terms of the potential deal could not be learned, but one person said that InBev had indicated that it would be willing to pay more than the $65 a share it had originally offered."
Perhaps it is finally dawning on public company boards that offers well in excess of current market value are hard to beat, especially in a bad economy. The Rohm and Hass (ROH) board clearly decided that a bid from Dow Chemical (DOW) was too good to be true. On the other hand, the board at Yahoo! (YHOO) has not learned that lesson. It has cost shareholders about a third of the value of the company’s shares.
BUD’s board looks like it is about to give in.
Good move.
Douglas A. McIntyre
Dow Chemical (DOW) Gambles Inflation Will Stay With Rolm and Hass (ROH) Buy-Out
Dow Chemical (DOW) recently raised prices on a number of its products by 20%. It said that the price of the core commodities it used in manufacturing was simply up too much. Wall St. was not willing to buy in to the theory that Dow could keep the volume of its sales up while passing significant price increases on to its customers. Consequently, DOW sits near its 52-week low, trading at $33.96 down from a period high of $47.96.
But DOW has decided to double down on inflation in a manner which seems almost reckless. It will takeover Rohm and Haas, paying $78 per share in cash. Berkshire Hathaway will put up $3 billion toward the $18.8 billion purchase price, but that does not make the move any safer.
ROH is also trading near its 52-week low, changing hands at $48.33. The premium DOW is paying for its shares is spectacular, especially in a tight credit market and a slowing economy.
DOW has only one rational reason for the move. It still believes that its customers and the ROH customers are willing to weather and pay higher prices for DOW’s chemicals and the building and construction, electronics, and packaging produces that ROH makes.
Commodities prices are unlikely to fail within the foreseeable future. That means that DOW does not have the "out" of a drop-off in its cost of goods sold.
That leaves one window and one window only. The world is heading into an inflation cycle and DOW can make money on that. Its customers need it too much.
Maybe.
Douglas A. McIntyre
Chemicals on Fire After Rohm & Haas Merger With Dow (ROH, DOW, BRK.A, APD, CE, EMN, ASD, HUN)
Rohm & Haas (NYSE: ROH) has agreed to be acquired by Dow Chemical (NYSE: DOW) in an $18.8 Billion dollar merger ($15.3 Billion in equity value). The terms to shareholders value the company at more than $78.00 per share in a cash buyout.
Interestingly enough, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) and the Kuwaiti Investment Authority are investing in the deal. Rohm & Haas is more diversified than mere chemicals but a 74% premium deal has interest likely falling into other key chemical players and ones to watch would be Air Products (NYSE: APD), Celanese (NYSE: CE), Eastman Chemicals (NYSE: EMN), Ashland (NYSE: ASH) and in particular Huntsman Corp. (NYSE: HUN).
The deal is subject to shareholder approval, but this is likely a done deal so long as no anti-trust issues crop up. The 52-week trading range is $44.13 to $62.68 and shares have never traded that high, so it seems no one will fight this.
There are more than 30% of the shares owned or controlled by Haas family trusts and they have indicated their support of the merger. Rounding up the other votes should be easy at this point.
Jon C. Ogg
July 10, 2008
Dow Chemical (DOW) Buy Rolm and Hass (ROH) For $78 A Share
Dow Chemcial (DOW) will buy Rolm and Hass (ROH) for $78 a share or $18.8 billion.
Reuters writes that Dow will make the purchase to broaden its product offerings in the paints, coatings and electronic materials.
Hard to imagine paying that premium in this economy.
Douglas A. McIntyre
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Today’s top tickerspy Indexes Coffee Stocks +15.8% Cement Stocks +3.7% Platinum and Pall... +3.1% Australia Stocks ... +3.1% Canadian Energy T... +3.1% 
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