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.
Subscribe to:
Post Comments (Atom)
Popular Posts
-
Back in 2017, I made a bet with Warren Buffett and my friends Carl over at 1500Days and Ben at Suredividend . Buffett does not know that...
-
Warren Buffett does not need any introduction. He is a very successful investor who is in charge of Berkshire Hathaway. He has an impressiv...
-
As part of my review process, I look at the dividend increases every week. I use the following resources to compile this list, if you are i...
-
In my monitoring process, I tend to analyze companies I own once every 12 to 18 months. However, I also receive push notifications such as a...
-
One of the most common questions I receive relates about the idea of how to invest a lump-sum amount. I believe that the answer is not a one...
-
I review the list of dividend increases as part of my monitoring process. This process helps me review how the companies I own are doing. It...
-
As a shareholder, there are two ways to make profits from a stock. The first way is when you sell your stock for a gain, after it has incr...
-
Warren Buffett is one of the world’s richest people. He is also one of the worlds most successful investors. He is one of the few individual...
-
The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years...
-
At the beginning of the 21st century most young people are told that social security won’t be there for them when they retire from the work ...
I was in the same boat,
ReplyDeleteI initiated a position on July 1 after watching it skid for a while and was almost giddy when I caught it at what I figured to be its sales per share.
There are a number of industrials at super cheap valuations right now and its beginning to show in some of this M&A action.
Nurse B 911,
ReplyDeleteThanks for stopping by. A lot of the Dividend Aristocrats are pretty cheap these days. Even if we are in recession, most of the stocks which I have focused on in this blog have "moat" and thus would perform pretty consistently over the next years.