Job cuts seem imminent at Dow Chemical Company if the verdict of the outcome of its court battle with Rohm and Haas Co. doesn't favour it. Dow, one of Michigan's largest employers, wants to delay its US$18.8 bln acquisition of Rohm & Haas, but may fail if it cannot convince the judge that the delay is necessary. In this eventuality, Dow may be forced to close the deal signed last year, compelling the company to cut deeper into its cost structure. Dow had expected to use funds out of the billions it would receive from the formation of K-Dow to help pay for Rohm but that plan failed, as Kuwait 2) aborted the JV plans.
Dow wants to delay closing its Rohm acquisition because of the poor economy, the credit crisis, the sharp drop in chemical orders and the Kuwait government's decision in late December to withdraw from its K-Dow Petrochemicals JV with Dow. Rohm & Haas opines that Dow has the resources to meet the merger agreement's obligations, and has sued Dow after it failed to close the deal by the Jan. 27 deadline.
06-Mar-09 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}