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Debt to Remain Investment Grade: Dow CEO

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Published: Thursday, 10 Jul 2008 | 7:47 AM ET
By: Reuters

Dow Chemical, which earlier Thursday announced a deal to acquire Rohm and Haas for $18.8 billion, has early indication from credit ratings agency Moody's that its debt will remain investment grade following the deal, said Chief Executive Andrew Liveris on Thursday.

"We will have debt to total capitalization that is well within our range, lower than 40 percent," said Liveris, in an exclusive interview with Reuters.

"I will also now speak to a new (earnings) target, which will be north of $4 a share at the next industry trough," said Liveris.

The deal is being partly financed by Berkshire Hathaway , the Kuwait Investment Authority, along with debt financing from Citigroup, Merrill Lynch and Morgan Stanley .

Warren Buffett's Berkshire will become Dow's largest shareholder, said Liveris.

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Dow Chemical, which earlier Thursday announced a deal to acquire Rohm and Haas for $18.8 billion, has early indication from credit ratings agency Moody's that its debt will remain investment grade following the deal, said Chief Executive Andrew Liveris on Thursday.
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