Dow Chemical(DOW) announced that they will seek legal action against the Kuwaiti government for the cancellation of the DowK joint venture. Dow is hoping to recover about 2.5 billion dollars to help in financing its Rohm & Haas acquisition. Dow is expected to pay over 100 million per month in fees for not completing the Rohm & Haas deal by January 10th. While 100 million dollars is nothing to sneeze at, this is a smart move by Dow because they can use the extra time to negotiate a lower price for Rohm & Haas. Dow Chemical can save billions by getting Rohm & Haas to take a significantly reduced buyout in the 50′s. I continue to hold Dow shares and believe that the shares have bottomed as evidenced by the price rebound despite the current challenges.
Make Money Investing The Warren Buffett Way
