Dow Chemical Co. and Rohm and Haas Co. issued a statement today announcing "that they are in discussions relating to the merger of their companies and the pending litigation. At this time, the companies cannot predict the outcome of these discussions. The companies will not comment further on these discussions at this time." Reuters news service noted that the news caused shares in both companies to surge. Dow was up $1, or 15.5 percent, at $7.47, and Rohm rose $8.49, or 15.7 percent, to $62.50 on the New York Stock Exchange. Rohm and Haas sued Dow in January to try to force the company to complete its purchase. The trial is scheduled to start on Monday. I don't think either company's CEO wants to sit in the witness box and be grilled by the other firm's lawyers. Smart money says they settle.
Will Dow and Rohm and Haas settle? You bet!
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