Dow Chemical Announces Stock Offering

By ERNEST SCHEYDER

posted: 280 DAYS 10 HOURS AGO

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MIDLAND, Michigan -Dow Chemical says it will issue about $1.63 billion in common stock.

The largest U.S. chemicals maker, based in Midland, Michigan, will use about $1 billion of the offering to reduce debt from last month's $16.5 billion acquisition of rival Rohm & Haas Co.

The remaining $625 million will be converted from preferred stock — currently held by various trusts — into common shares.

"Today's offering will not only strengthen our balance sheet and improve our financial flexibility, but it is also very consistent with the objectives" of our plan to cut debt, Chairman and Chief Executive Andrew Liveris said Tuesday in a statement.

Shares fell 58 cents, or 3.6 percent, to $15.71 in aftermarket trading.

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2009-05-05 16:58:41