By Beina Xu
Of DOW JONES NEWSLETTERS
Dow Chemical Co. (DOW), which is buying Rohm & Haas Co.
(ROH), has already received more than six bids for Rohm's
Chicago-based Morton Salt unit.
Earlier this week, Dow ended a dispute with Rohm & Haas,
agreeing to pay the original price of $15.3 billion, or $78 a
share, for the deal signed last July, plus penalties.
(This story also appeared in LBO Wire, a newsletter published by
Dow Jones & Co. that covers private equity.)
Dow Chief Executive Andrew Liveris said that after the merger
with Rohm & Haas closes on April 1, the sale of Morton Salt
would be "a very quick transaction" the company believes can be
north of $1.5 billion, according to a transcript of a Dow
conference call.
Rohm & Haas had looked at selling the business a year or so
back, but believes it can move forward on the sale now, said
Liveris, adding the company has received more than six "very
meaningful" bids already. A spokesman declined to identify
interested parties.
Along with Morton Salt, the company plans to sell other assets
expected to generate in the neighborhood of $4 billion.
Rohm & Haas bought Morton Salt in 1999. The company, with
its familiar slogan "When It Rains It Pours," produces food salt as
well as industrial salt.
-By Beina Xu, Dow Jones Newsletters; 201-938-4291;
beina.xu@dowjones.com