The changing face of global finance came into stark relief yesterday as Dow Chemical tapped Warren Buffett and Kuwait’s SWF to help pay for its $18.8bn takeover of Rohm & Haas. Buffett is set to become the single largest shareholder in the enlarged group. The participation of Buffett’s Berkshire Hathaway, which will provide $3bn, and the Kuwait Investment Authority, which will invest $1bn in the Dow deal, underlines the instrumental role of cash-rich investors during the current crisis in debt and equity markets. The Haas family, which controlled 33% of R&H, are getting out while the getting is good, says Lex, as it argues that a $78 per share offer at a premium of 74% on Wednesday’s close, could not be turned down.
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