Dear Elmer. Re: Dow Chemical is a viable functioning company. It's not reasonable to put them in the same category as AMD.
The article contained the following insight: “Dow and other chemical makers around the globe face one of the worst slumps ever in chemical demand, due to recessions in most developed countries and a sharp slowdown in emerging economies.
Earlier this month, Dow said it would close 20 facilities, divest several businesses and cut 5,000 jobs, or 11 percent, of its workforce. It also plans to temporarily idle about 180 plants
Kuwait and Dow lowered the value of the joint venture more than 8 percent to $17.4 billion earlier this month after the Gulf Arab state asked to cut its contribution in light of a sharp slowdown in global demand.
The cancellation of the deal, which had met opposition in Kuwait's parliament, was acknowledged Sunday by Dow and is a blow to the largest U.S. chemicals company. Dow had planned to use the proceeds to repay a large part of $13 billion in debt it will have to shoulder once its acquisition of rival Rohm & Haas (ROH.N) closes, which is expected to be in early 2009.
The new company had been due to market petrochemicals and plastics such as polyethylene, polypropylene and polycarbonate, used in products ranging from plastic bottles and compact disks to computers and agricultural compounds. In July, Dow said it would acquire Rohm & Haas for $15.3 billion in a move to broaden its specialty product offerings.”
Please notice the similarity with the deceitful scheme of AMD:
1/ DOW is in financial trouble.
2/ Kuwait and Dow lowered the value of the joint venture.
3/ Dow had planned to use the proceeds to repay a large part of $13 billion in debt it will have to shoulder once its acquisition debt it will have to shoulder once its acquisition of rival Rohm & Haas (ROH.N) closes, which is expected to be in early 2009.
4/ Dow proposed to create a valueless subsidiary company in partnership with Kuwait.
