Dow Chemical taking legal action in failed Kuwaiti venture
This is positive because it shows how DOW has many other opportunities to JV with other companies for its commodity plastics business. The rumor is that DOW will try to renegotiate the acquisition price of ROH down to around $50, from $78. I do believe that the CEO Andrew Liveris will be sucessful in acquiring ROH and continue his transformations strategy of the company.
Warren Buffett has affirmed his commitment to the take over and would likely finance more of it if DOW is unable to complete a JV in a timely fashion. With the stock currently yielding over 11%, I think DOW is a steal.
Tuesday, January 6, 2009
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