http://www.reuters.com/article/businessNews/idUSWNAB026420080710 NEW YORK (Reuters) - Dow Chemical Co said on Thursday it would buy rival Rohm and Haas Co for $18.8 billion, in a move to broaden its product offerings in the paints, coatings and electronic materials. The all-cash deal offers a 74 percent premium compared to Rohm and Haas Co's closing price of $44.83 per share on Wednesday on the New York Stock Exchange. Financing for the acquisition includes an equity investment by billionaire Warren Buffett's Berkshire Hathaway and the Kuwait Investment Authority in the form of convertible preferred securities for $3 billion and $1 billion, respectively.
Clearly DOW is making a massive offensive move to save their business in the face of huge margin pressures. Expectations of $13bn in revenue in 6months? ROH 2007 rev at <$9bn. They've been sniffing their own fumes for too long.