Rohm and Haas Wins Right to Trial in Row with Suitor
Dow's decision to back out of acquisition going to court
By Dave Hannon -- Purchasing, 1/28/2009 9:23:00 AM
Rohm & Haas’ has received approval for a speedy trial in its lawsuit with Dow Chemical after Dow missed its deadline to close on its acquisition of Rohm & Haas. Chemcial giant Dow announced Monday it would not be able to close the deal this week, as scheduled. In a statement, CEO Andrew Liveris said Dow “remains interested in discussions to find a solution to complete the acquisition of Rohm and Haas, but recent events have made closing untenable at this time.”
Dow pointed to the macroeconomic trends and last month's implosion of Dow's planned $17.4 billion joint venture with Petrochemicals Industries Company of Kuwait (PIC) as reasons for tabling the Rohm & Haas deal. As reported on Purchasing.com, Kuwait’s Supreme Petroleum Council chose to pull out of a joint venture with Dow Chemical called K-Dow, and Dow is pursuing its own legal fight on that front.
“The world has changed significantly and we still do not see the bottom of this unprecedented demand destruction which only accelerated through the fourth quarter and brought December operating rates to historic lows,” Liveris said in the statement.
According to Dow Jones Newswires, Rohm & Haas contends in the suit that Dow engaged in “surreptitious, wrongful and deliberate efforts” to delay antitrust clearance of the merger. Dow Jones also reports that Liveris met with Rohm & Haas executives last week and asked for an extension until June 30 to close the deal. But Liveris refused to commit to going through with it even if Rohm & Haas granted the extension, the suit contends. Last week, Rohm & Haas said it was cutting 5.5% of its workforce.
By Dave Hannon -- Purchasing, 1/28/2009 9:23:00 AM
Rohm & Haas’ has received approval for a speedy trial in its lawsuit with Dow Chemical after Dow missed its deadline to close on its acquisition of Rohm & Haas. Chemcial giant Dow announced Monday it would not be able to close the deal this week, as scheduled. In a statement, CEO Andrew Liveris said Dow “remains interested in discussions to find a solution to complete the acquisition of Rohm and Haas, but recent events have made closing untenable at this time.”
Dow pointed to the macroeconomic trends and last month's implosion of Dow's planned $17.4 billion joint venture with Petrochemicals Industries Company of Kuwait (PIC) as reasons for tabling the Rohm & Haas deal. As reported on Purchasing.com, Kuwait’s Supreme Petroleum Council chose to pull out of a joint venture with Dow Chemical called K-Dow, and Dow is pursuing its own legal fight on that front.
“The world has changed significantly and we still do not see the bottom of this unprecedented demand destruction which only accelerated through the fourth quarter and brought December operating rates to historic lows,” Liveris said in the statement.
According to Dow Jones Newswires, Rohm & Haas contends in the suit that Dow engaged in “surreptitious, wrongful and deliberate efforts” to delay antitrust clearance of the merger. Dow Jones also reports that Liveris met with Rohm & Haas executives last week and asked for an extension until June 30 to close the deal. But Liveris refused to commit to going through with it even if Rohm & Haas granted the extension, the suit contends. Last week, Rohm & Haas said it was cutting 5.5% of its workforce.
source: www.purchasing.com
