Author Topic: DuPont Dow merger and plan  (Read 3055 times)

G-dog

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DuPont Dow merger and plan
« on: December 11, 2015, 08:04:09 AM »
I am interested in Your thoughts on the proposed merger and then planned split up.


MDM

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Re: DuPont Dow merger and plan
« Reply #1 on: December 11, 2015, 03:31:20 PM »
Seems articles from the Delaware press say jobs will move to Michigan, while the Michigan press says jobs will move to Delaware.  I guess fear sells.  Time will tell.

G-dog

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Re: DuPont Dow merger and plan
« Reply #2 on: December 11, 2015, 03:40:53 PM »
Seems articles from the Delaware press say jobs will move to Michigan, while the Michigan press says jobs will move to Delaware.  I guess fear sells.  Time will tell.

I had not heard that - funny. Concern in Iowa is regarding Ag, i.e. will Ag headquarters stay in Iowa? I think Dow Ag is mostly in Indianapolis ((?)

MDM

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Re: DuPont Dow merger and plan
« Reply #3 on: December 11, 2015, 03:54:49 PM »
Haven't read those details but would guess the same applies: Iowans are worried that Indy will "win" and vice versa....

Not really clear who is the overall acquirer and who is the acquiree. 

G-dog

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Re: DuPont Dow merger and plan
« Reply #4 on: December 11, 2015, 04:05:36 PM »
Haven't read those details but would guess the same applies: Iowans are worried that Indy will "win" and vice versa....

Not really clear who is the overall acquirer and who is the acquiree.

They call it a merger of equals, so ..... But, it does seem that some has to be the acquirer.

Financial.Velociraptor

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Re: DuPont Dow merger and plan
« Reply #5 on: December 11, 2015, 04:37:44 PM »
According to an advisory in my Interactive Broker's account: DD is acquiring DOW at the rate of .7615 shares of DD per share of DOW.  It is an all stock deal (no cash).

G-dog

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Re: DuPont Dow merger and plan
« Reply #6 on: December 11, 2015, 04:43:27 PM »
According to an advisory in my Interactive Broker's account: DD is acquiring DOW at the rate of .7615 shares of DD per share of DOW.  It is an all stock deal (no cash).

That is equivalent to the 1:1.28 stock ratio they announced? I admit I am not quite sure how to calculate this.

It's no cash since neither have cash? Though in general there have been complaints that corporations are still hoarding cash since the recession.

Or does a stock only deal indicate other items of interest?

Financial.Velociraptor

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Re: DuPont Dow merger and plan
« Reply #7 on: December 11, 2015, 04:48:34 PM »
According to an advisory in my Interactive Broker's account: DD is acquiring DOW at the rate of .7615 shares of DD per share of DOW.  It is an all stock deal (no cash).

That is equivalent to the 1:1.28 stock ratio they announced? I admit I am not quite sure how to calculate this.

It's no cash since neither have cash? Though in general there have been complaints that corporations are still hoarding cash since the recession.

Or does a stock only deal indicate other items of interest?

I get 1.31319..., it was probably 1.28 based on price at the time of announcement.

maizefolk

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Re: DuPont Dow merger and plan
« Reply #8 on: December 11, 2015, 05:06:36 PM »
What it means
According to an advisory in my Interactive Broker's account: DD is acquiring DOW at the rate of .7615 shares of DD per share of DOW.  It is an all stock deal (no cash).

That is equivalent to the 1:1.28 stock ratio they announced? I admit I am not quite sure how to calculate this.

It's no cash since neither have cash? Though in general there have been complaints that corporations are still hoarding cash since the recession.

Or does a stock only deal indicate other items of interest?

It doesn't have to indicate anything about the total amount of cash either company has just that neither set of shareholders is going to get any direct payment for the merger (theoretically they'll both benefit from the increased profit margins of the combined company).

According to google finance Dow has 1.16B shares outstanding and Dupont has 876M. 876*1.28 = 1.12B shares in the new company controlled by former Dupont shareholders and 1.16*1 = 1.16B shares in the new company controlled by current Dow shareholders. That's close enough I wonder if the intent was for a 50/50 split between the former owners of the two companies (share counts tend to fluctuate based on buy backs and employees exercising options and the numbers on google finance might be out of date.).