Dow-Rohm Deal: Coat-Tail Winners
Dow Chemical is buying Rohm & Haas for $18.8 billion. Who are the biggest winners and losers?
Clearly the biggest winner is the Haas Family Trusts and their 33% stake -- which has instantly gone from a 22-month low to an all-time high.
After that, the latest federal filings show Boston-based Evergreen Investment owns about 29%, followed by an 11% stake held by Los Angeles-based Capital Group, which runs the American family of funds.
Two-thirds of the 18 analysts who covered the stock rated ROH a "hold," with Citigroup most recently cutting its recommendation to "sell" on July 1. There are 5 "buy" ratings on the stock.
As is the case with any takeover that has a huge premium, a scramble of ''relative valuation'' typically ensues, as investors say if ROH is worth "X," than my specialty chemical maker has to be worth "Y."
There are a dozen large cap "Specialty Chemical" names in the Russell 1000, including:
Albemarle, Valspar, Sigma-Aldrich -- and even International Flavors & Fragrances is considered a spec chem.