Shares of Dow Chemical and Rohm & Haas soared this afternoon, after the two companies confirmed they had started talks to restart a merger and a pending lawsuit related to the deal. When Dow swooped in last summer to buy a much-smaller rival, many believed the $15 billion offer was too high with Wall Street barreling toward an economic meltdown and the mortgage crises in full swing. Since that July bid, Dow’s market capitalization—or the total value of all its shares—has fallen well below that of its target, Rohm & Haas, and even below its $15.4 billion offer for the Philadelphia-based specialty chemicals maker. Today, Dow moved nearer to closing the deal, one that CEO Andrew Liveris has said would be an economic disaster in the current environment. The companies confirmed they were in direct talks, yet a Delaware court date is still scheduled for Monday if the two can’t come to an agreement.
Dow, Rohm Haas talking again about deal
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