Recent Blog Posts
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The Times' Rorshach Geithner Story
Apr 27 20099:26 am EDT -
Sinking Animal Spirits
Apr 27 20098:45 am EDT -
Counter-cyclical Urban Policy
Apr 26 200910:00 am EDT -
Be Your Own Counterfeiter
Apr 26 20099:36 am EDT -
Being Tim Geithner
Apr 25 200912:37 pm EDT -
Notes From a Press Conference Naif
Apr 25 20099:41 am EDT -
What Good is the News?
Apr 25 20098:32 am EDT -
Stressful Enough
Apr 24 20092:29 pm EDT -
Not Regretting the Pound
Apr 24 20091:09 pm EDT -
Introducing the New Ford Squeeze
Apr 24 20099:47 am EDT
Links
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How Bear Markets Help M&A Dealmaking
The FT reports on how the Dow-Rohm deal got done so easily:
Dow's $78 per share bid represented a premium of 46 to 47 per cent to Rohm and Haas' share price when the parties first started to negotiate, but as the company's shares sank, that premium widened substantially. Without that market pressure on Rohm and Haas' board, the deal might not have happened, one insider said.
By the time the deal was announced, that $78-per-share bid represented not a 46% premium, but rather a 74% premium. At that point one can see how it would be hard for the Rohm & Haas board to refuse the offer, especially considering that Rohm & Haas has only ever traded above $60 a share for one day back in April.
In other words, if you're a strategic acquirer paying cash, bear markets are your friend, and make it much easier to get deals done. I knew there had to be a silver lining in this bear market somewhere!
Also, a quick note: blogging is going to be slim to nonexistent for the rest of the weekend, as I celebrate my sister's wedding. Here's to Rhian and Andy!
