Dow Chemical Shares Climb On Report Of Possible $50 Billion Buyout

[M.D. Holloway]

Dow Chemical Shares Climb On Report Of Possible $50 Billion Buyout

Manufacturing.Net - April 09, 2007

NEW YORK (AP) - Shares of Dow Chemical Co. rose more than 10 percent Monday after a British newspaper reported a group of Middle Eastern investors and U.S. buyout firms was preparing a bid for the chemicals and plastics maker.

The Sunday Express reported over the weekend that the group has secured financing backing for a $50 billion bid for the Michigan-based chemicals company; making it the biggest leveraged buyout ever.

The reported investment team, which includes private equity firm Kohlberg Kravis Roberts & Co., is preparing a bid of $52 to $58 per share. At the low end, that would be a 17 percent premium over Dow Chemical's closing stock price of $44.47 on Thursday on the New York Stock Exchange. The market was closed on Good Friday.

Dow Chemical's stock jumped $4.53, or 10.2 percent, to $49 in premarket trading Monday.

The newspaper said a bid between $52 to $58 a share could come this week, with half the financial backing coming from investors in Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman, and half from U.S. investors.

The newspaper did not name any other investors other than KKR and did not cite sources.

Dow Chemical makes and sells chemicals, plastics and farm products to customers in a range of industries.

[legion]

KKR is behind this. I thought they quit the LBO game long ago, but I guess not.

[David]

KKR bought our company a couple years ago for $3bil and sold it a year later for $6bil. Not a bad return of course we're still straightening out the crap they left us with. The good thing was they put an end to all the silly meetings and committees that we were having to attend before they showed up.

[M.D. Holloway]

That is the problem with those types - they can swing a profit but the wake of distruction in the aftermath is bloody. I was never a big fan of Dow. IMO they have single handedly been responcilble for more death and pollution then anyone else save duPont.

Anyone ever read the "Behind the Plastic Curtain"?

[red-beard]

Dow Chemical: Has Had No Discussion About Leveraged Buyout

DOW JONES NEWSWIRES
April 9, 2007 5:12 p.m.

DOW JONES NEWSWIRES

Dow Chemical Co. (DOW) said in a statement late Monday it "has had no discussion about a leveraged buyout."

The Midland, Mich.-based chemical giant said its board "fully supports Dow's management team and its plan to continue enhancing value for all shareholders through the execution of its strategy."

An unsourced report in the British tabloid the Sunday Express said a party of private equity firms and Middle Eastern investors were close to announcing a $50 billion buyout for the company.

Dow shares rose nearly 5% Monday to close at $46.63.

-Gabriel Madway; 415-439-6400; AskNewswires@dowjones.com