Therefore, this favors Rohm and holds Dow responsible to act in accordance with this clause. This clause is in the favor of Dow, which restricts that Rohm is responsible for not talking to other parties and this will in turn drive the price up.
This risk of delay has been allocated to Dow Company. This controls the risk of delay in the transaction. Risk of Improper Transaction Valuation The valuation involves a range of assumptions and therefore, it is subjective. A fairness opinion has also been made in paragraph 3. Therefore, this favors Rohm and holds Dow responsible to act according to this clause.
This fairness opinion is in the best interests of both Dow and Rohm.
This mitigates the improper valuation risk of Rohm. This provision includes the details of the consideration, which would be paid by Dow Company to Rohm shareholders. Material Adverse Effect Clause: If the valuation of Rohm is performed incorrectly, this would have a significantly negative impact on the shareholders of both the companies.
Question 3 The analysis for each of the provision of the agreement shown in Exhibit 4 is performed below: For example, in paragraph 5.
Therefore, in this way, this risk has been allocated to both the parties. This provision covers the risk of non-payment and it is borne by Dow Company. Both companies would bear this risk.
This risk of delay has been allocated to Dow. The integration of the pre merger operations and business activities is a complex task, which needs to be skillfully handled. Other Risks There are also other risks inherent in this proposed merger but due to lack of information in the case, these are not significant.
This fairness opinion is in the best interests of both Dow and Rohm…………………… This is just a sample partial work. Please place the order on the website to get your own originally done case solution Related Case Solutions: Therefore, these are all the main risks that are inherent in this merger transaction.
Therefore, a fairness opinion has also been made in paragraph 3. This provision sets the closing date of the merger deal. There is also a risk of material adverse change of the target.
Thus, it covers the risk of not closing the deal at the right time. Under this legal provision, where acquirer can refuse to complete the deal, if there have been adverse material changes at the target, which make it less attractive as a company. Under this legal provision, acquirer can refuse to complete the deal if there have been adverse material changes at the target, which make it less attractive as a company.Rohm & Haas’ presence in the global market will provide Dow with an expanded network into emerging markets, producing important sources of revenues, while the synergies would create an outstanding business portfolio with diversified products and significant growth opportunities%(3).
In order to draw a conclusion of the reasonability of the bid, we need to valuate Rohm and Haas as a firm with and without the synergies created by the acquisition. If this total value exceeds the $78 share price, Dow will pay the price, since it will be beneficial for them.
Rohm and Haas would be a strong operational and strategic fit for Dow. This acquisition would bring synergies as well as benefits in products and technologies, broad.
Dows Bid for Rohm and Haas Case Solution,Dows Bid for Rohm and Haas Case Analysis, Dows Bid for Rohm and Haas Case Study Solution, This case reviews the proposed acquisition of Dow Chemical Company, Rohm and Haas in $ billion acquisition was part of the strategic transformat.
dows bid for rohm and haas Words | 20 Pages Introduction The case presents an American company Dow, producer of commodity chemicals, who is in the final stages of acquiring another company Rohm and Haas.
Dow is also pursuing another key deal with Kuwait’s Petrochemical Industries Company (PIC) that was supposed to generate $7 billion cash net of tax which could be used to finance acquisition of specialty chemical maker Rohm & Haas for $ billion all cash deal.Download