Rohm and Haas Company (NYSE: ROH) entered into an agreement with The Dow Chemical Company (NYSE: DOW), under which Dow will acquire all of the outstanding shares of Rohm and Haas common stock for $78.00 per share in cash. Shares of ROH closed at $44.83 yesterday. The agreement provides that Rohm and Haas Company will retain its Philadelphia Headquarters location, and continue to do business under the Rohm and Haas name. Additionally, Dow will contribute a number of specialty chemicals business segments to the Rohm and Haas portfolio which have greater synergy with the Philadelphia Company’s established strengths. Source: StreetInsider
My dividend growth stocks are getting bought out by competitors as they present stable corporations with a nice moat. The first one that is in talks to be bought out is BUD. Now ROH is going to be bought out by a consortium of a Kuwait Sovereign Wealth Fund, Buffet and Dow Chemical. I was only able to accumulate a half position in ROH, but nevertheless now I have to re-allocate the funds accross the rest of my portfolio. You could check my analysis of ROH here.
At the time of this weriting ROH is up over 65% from yesterday's close. I would consider selling half of my position shortly in order to lock in a gain. The market price is about 5% lower than the offer price at $78. The companies have said they hope to complete the deal by early 2009. I would keep my other half of the position to tender it by that time.
Popular Posts
-
As part of my monitoring process, I review the list of dividend increases every week. I usually focus on companies that have managed to b...
-
I review the list of dividend increases every single week, as part of my monitoring process. This process helps me check the pulse of the di...
-
Dividend Growth Companies are businesses that have managed to increase annual dividends for several years in a row. Typically, established d...
-
I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps me to monitor existing hold...
-
Breaking down the total returns by source, helps you understand perfectly how total returns are generated Total Returns are a function of: 1...
-
I review the list of dividend increases every week as part of my review process. There were 35 dividend increases over the past week. Six of...
-
The NASDAQ US Broad Dividend Achievers Select Index is comprised of a select group of securities with at least ten consecutive years of incr...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing companies, and...
-
In my investing, look for businesses I can understand that have some sort of a competitive advantage that translates into consistent earn...
-
I am a big fan of Warren Buffett, the Oracle of Omaha. His letters to shareholders are an excellent resource for students of value investing...
