Rohm & Haas Co. has filed a lawsuit against Dow Chemical Co to force through a US$15 bln merger agreement between the companies. In July, Dow had agreed to buy Rohm and Haas for US$78 a share to expand its relatively high-margin specialty-chemicals business, agreeing to absorb US$3.5 bln of Rohm & Haas's debt as a part of the deal. As per an announcement by Rohm and Haas, Dow Chemical has backed out of its takeover plan despite obtaining all required approvals last week, accusing Dow of trying to delay antitrust clearance for the deal, which received antitrust approval Friday. Dow was required to close the deal within 2 business days of the final regulatory approval, which occurred Friday. Prior to the approval, Dow had the option to pay US$750 million break-up to get out of the deal, but that is no longer an option. Dow's failed joint venture with Kuwait's Petrochemical Industries Co., which was to provide funding, was not part of the conditions for seeing the deal consummate. Dow has cited the collapse of the Kuwaiti deal and the shabby state of the economy for at least postponing the transaction.
28-Jan-09 
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