Major unsubstantiated rumor on Dow Chemical.
Dow Chemical to get leveraged buyout bid, U.K. newspaper says
Sunday February 25, 2:24 pm ET
By Steve Goldstein
Bid could be worth $54 billion, U.K. tabloid newspaper says
LONDON (MarketWatch) -- Dow Chemical will be the latest and largest firm to get a leveraged buyout offer -- if an unsourced report from a British tabloid proves accurate.
In the next few weeks, Dow (NYSE:DOW - News) will get a takeover bid worth up to $54 billion from a consortium of private-equity firms, the report said. Over the weekend, there were several reports of an imminent private-equity bid for Texas utility TXU valued at around $44 billion. See related story on TXU.
However, the report is from a publication not well-known for its mergers-and-acquisition coverage -- the U.K. tabloid the Sunday Express, which also offered its readers a compact disc from the Culture Club. The newspaper didn't identify the source of its information.
It said the buyout team is "likely" to be composed of Kohlberg Kravis & Roberts, Blackstone Group and Carlyle Group. They intend to break up Dow Chemical into smaller companies, the report said.
An offer is expected to come in at $60 a share, against Friday's close of $43.45, the report added. Unnamed "speculators" believe the break-up value could be up to $80 a share, it said.
Dow Chemical, the top U.S. chemicals maker, is a component of the S&P 500. A message left with the company wasn't immediately returned.
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