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
-
I review the list of dividend increases each week, as part of my monitoring process. This exercise helps me monitor existing holdings and po...
-
I review the list of dividend increases every week, as part of my monitoring process. It's helpful as one of the things I use to review ...
-
The US Stock Market is one giant dividend growth machine. What is truly remarkable is that the record of dividend payments by US corporation...
-
Cash sitting on company balance sheet that's not utilized earns no/small return. There's a risk it would be pissed away/wasted on lo...
-
Many investors discuss Buffett on diversification, and conclude that he ran a "concentrated portfolio" This is missing the nuance ...
-
I review the list of dividend increasess every week, as part of my monitoring process. This exercise helps me review existing holdings and p...
-
Some people out there want to beat the market. As a result, many try different things, in order to achieve their goals and objectives. One o...
-
Success in investing is easy to compute. You either make money overall over a certain period of time, or you don't. If you do make money...
-
I review the list of dividend increases every single week, as part of my monitoring process. A long history of dividend increases is an indi...
-
I invest in Dividend Growth Stocks. These are companies that have managed to increase dividends for many consecutive years in a row. This i...