NEW YORK — Dow Chemical said it will not close on its $15.4 billion buyout of Rohm & Haas Co. by this week’s deadline, an announcement Monday that was followed by a lawsuit from the specialty chemicals maker.
The news sent shares of Rohm & Haas Co. tumbling 13.2 percent, or $8.72, to end at $57.10. Shares of Dow Chemical Co. fell 7.6 percent, or $1.09, to $13.24.
The Federal Trade Commission signed off on the acquisition Friday, creating a deadline of today for Dow to close the deal under its agreement with Rohm & Haas.
Dow cited the financial crisis and the decision by a Kuwaiti state-owned petrochemical company to pull out of a $17.4 billion joint venture with Dow just days before the deal was to close at 2008’s end.
Dow had planned to use billions from that deal to fund the Rohm & Haas acquisition.
Philadelphia-based Rohm & Haas filed suit in Delaware to force Dow to close the deal without delay, saying there can be no extension without the agreement of both companies.
Rohm & Haas accuses Dow’s chief executive, Andrew Liveris, of lobbying FTC officials to extend its approval of the deal. That violated the acquisition agreement, Rohm & Haas said.
Dow confirmed it had discussions with certain commissioners but said they were in line with “our responsibilities to direct the regulatory defense of the transaction.”
