A consortium comprising West Asian and American investors is planning a $50 billion
buyout of Dow Chemical Co., newspaper reports in the UK said, quoting sources
close to the deal.
planned offer of $52 to $58 a share for Dow Chemical that values the company at
least $50 billion, in what could be the world''s biggest ever leveraged buyout,
is likely by the end of the week.
from Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE and Oman will bring in at least
half of the capital while US buyout firms, including Kohlberg Kravis Roberts,
are contributing the rest, the reports said.
reports had suggested that strategic changes were afoot at Dow, which was planning
increased focus on specialty chemicals. Dow was also reported to be in talks with
Reliance Industries for a possible hive-off.
February last a newspaper report said Dow could get a takeover offer of as much
as $54 billion from buyout funds, without naming any sources, and in March, a
Wall Street Journal report quoting people familiar with the matter said that Dow
was in talks with Reliance Industries Ltd. about a potential joint venture.
approach was likely to come from a combination of global investors and American
private equity giants, who intended to break up the group into smaller companies
through a highly leveraged buyout, the report said. Representatives of Dow Chemical
and Kohlberg Kravis Roberts were not immediately available for comment.
Industries seems to have made retreat from its bid to acquire a controlling stake
in Dow Chemicals'' plastic and chemical business for $12 billion following the
entry of ravenously hungry private equity players like Carlyle, Blackstone and
huge funds at their disposal, these buyout firms tended to undermine valuations
in the bargaining process and the numbers that
Dow and Reliance Industries (RIL) had agreed on over three months of hectic negotiations
have come unsettled.
shares closed down 35 cents at $44.47 on the New York