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Rohm & Haas sues Dow Chemical for breach of contract

By Tim Wright | January 29, 2009

Rohm & Haas sues Dow Chemical for breach of contract

Rohm & Haas announced earlier this week that it is suing Dow Chemical in a Delaware court for failing to complete the agreed $15.4 billion takeover within the agreed time frame. After receiving the green light from the U.S. Federal Trade Commission (FTC) on January 23, 2009, Dow was obliged to close the deal by January 27. The trial will begin on March 9 and is scheduled to conclude in the same week. For every day beyond the original closing date, Dow faces a "ticking fee" of $3.3 million a day.

In as statement Dow said it won’t close the deal due to “uncertainties” in funding as a result of the global financial crisis. Dow cited a decision by the Kuwait government to cancel a planned joint venture last month as reason for the delay. That deal would have netted the firm $9 billion, which it planned to use to fund the takeover.

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