Wow, that’ll affect everything . But even if they fall . . . things will work out eventually . Just have to put your trust in something (lot) more powerful than Dow.
But wow
thanks for the heads up.
Whats interesting is the Middle Eastern influence . . . They (rich middle eastern countries Like Saudi / UAE etc) know that US is trying to get off oil, which means eventually the money will stop, as they expect the rest of the West will follow. Most Middle Eastern mentality sees West as following the US’ lead. UAE has lots of expensive buildings (google UAE) including that Desert Ski Resort. China is a powerful industrialized nation and Russia have enough of their own oil to wean off the Middle East.
Also China and Russia get oil from Iran (China and Russia seem to be backing up their little friend’s nuclear-ness)
Dow Chemical knows how to process the raw oil. The MIddle East guys don’t. Not only that is Dow holds some secrets of alternative fuel (veggie oil / hydrogen tech / ethaol / natural gas etc ) . . . Once they get ahold of Dow, they can figure out alternative energy / oil processing to keep making $$.
History is a like a river, it often repeats itself . . .
Surf related . . . ok once the ‘new’ MIddle Eastern shareholders have DOw. Then they probably will not want to produce older and outdated technology including the famous two main building materials that came from WW 2.
And cries of surfboard industry falls on deaf ears. Which in this case those two raw materials become ‘rare’ and very expensive. So board builders will be forced to go with new materials
So then you’ll have upstart resin companies forming to fulfill a need like new foam companies after "The Fall’ (of Clark). But this could be a silver lining like clark’s death was . . . companies making resin and better like urethane blanks have gotten better . …
So
Boo Hostile take overs.
Hooray Blanks!
Dow Chemical denies buyout talk; shares slip
Mon Apr 9, 2007 5:54 PM ET
By Euan Rocha
NEW YORK (Reuters) - Dow Chemical Co. <DOW.N>, responding to a British newspaper report that a consortium was preparing a $50 billion bid for the company, said on Monday it has had no discussion about a leveraged buyout.
The statement sent Dow shares down 1.1 percent to $46.10 in after-hours trading, after they had risen 4.9 percent to $46.63 during trading on the New York Stock Exchange.
Analysts, meanwhile, expressed skepticism about a possible buyout, saying a strategic joint venture was more feasible.
“The company has had no discussion about a leveraged buyout,” Dow said in a brief statement after the NYSE closed for the day.
The chemicals company said its board of directors “fully supports Dow’s management team and its plan to continue enhancing value for all shareholders through the execution of its strategy.”
It said its statement was reiterating comments made earlier on Monday by Andrew Liveris, its chairman and CEO.
Earlier on Monday, Dow had said it would not comment on market rumors and speculation. But a Dow spokesman, Chris Huntley, did say: “We harness tremendous power from integration, we are not going to move away from that strategy … so a friendly takeover is not going to happen.”
He said most analysts agree that a hostile takeover is unlikely as Dow is too large and too integrated to allow such a bid to be successful.
The Sunday Express, a British tabloid, had reported that an approach valuing Dow at $50 billion or more could come by the end of the week.
The report, which quoted sources close to the deal, said at least half of the capital was being provided by investors from Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman, with the rest contributed by a number of U.S. buyout firms, including Kohlberg Kravis Roberts <KKR.UL>.
The Midland, Michigan-based company has been the subject of much speculation over the last few months. Besides being a suspected buyout target, it has been linked to joint ventures and other deals.
In late February, the Sunday Express, without naming any sources, reported Dow might be the target of a leveraged buyout worth $54 billion.
J.P. Morgan analyst Jeffrey Zekauskas said in a research note late last month: “We believe there is a low probability that a buyout will take place, but a reasonable probability that Dow can conclude a strategic joint venture for its Basic petrochemical assets, and perhaps other units as well.”
Citigroup analyst P.J. Juvekar said in a research note late last month: “We do not expect some kind of LBO or private equity buyout of Dow, it may do a deal in commodities, but we do not believe that selling the entire company or splitting off specialties from commodities is likely.”
Dow shares are up about 13 percent since mid-January, when the company was first reported to be a possible buyout target.
Despite the rise, the shares trade at only 11.8 times projected 2007 earnings, compared with an average multiple of 18.2 for the components of the Standard and Poor’s Chemical Index <.GSPPM>.
HSBC analyst Hassan Ahmed said Dow has about $3 billion in cash and, based on conservative estimates, is in a position to generate about $14 billion in distributable cash over the next five years, making it attractive to private equity players.
“Whether the deal takes this form or some other form, to a private equity player Dow is undervalued,” Ahmed said.
turbo
from wiki
The Dow Chemical Company is currently the second largest chemical manufacturer in the World (after BASF)[2]. Dow Chemical is a major provider of plastics, chemicals, and agricultural products. With presence in 156 Countries and more than 45,000 employees around the world, Dow holds itself to be one of the top world companies in innovation and research and development,[citation needed] with more than $1 billion annual expenditure in R&D and the single largest concentation of PhD and Engineers in the United States.[citation needed] Its stated vision under the current CEO, Mr. Andrew Liveris, is to contribute to create a better world.
The company was founded in 1897 by Canadian-born chemist Herbert Henry Dow, who had invented a new method of extracting the bromine that was trapped underground in brine at Midland, Michigan.[1] While at first the company sold only bleach and potassium bromide, Dow today has seven major operating segments, with a wide variety of products offered by each.[2] The company’s 2005 sales totaled $46.3 billion, with a net income of $4.5 billion. Traded on the New York Stock Exchange, as of 2005 Dow has about 105,000 shareholders.[3]
While Dow has a world wide presence both financially and due to product coverage, most consumers are aware of the company from press-releases rather than product usage. In recent times, Dow has been called a “Chemical companies’ Chemical company” in that most of their product is sold to other manufacturers rather than to end users. Dow had periods of selling into the Human and Animal Health markets as well as into the Consumer Products market (the latter most visible with Saran Wrap), but all of these facilities have been sold over the years.
Dow Chemical is an active member of the American Chemical Association, and an active partner in different programs and initiatives in both the World Bank and United Nations.