Does Dow’s drop doom deals?

May 7, 2010

specialistsAfter Thursday’s dizzying drops, U.S. markets fell again on Friday. Could the continuing drop in the market wreak havoc in the deal space? When the market dropped sharply in 2008, several large deals fell apart or nearly did, including Hexion’s scuttled takeover of Huntsman Corp and Dow Chemical’s takeover of Rohm and Haas. 

If the market declines in coming days it may put deals and restructurings on hold as companies re-assess how much they are worth and lenders take another look at the financing, experts said

One mergers and acquisitions banker said that it would take more than one day to have a negative effect. 

“One bad day does not kill a deal. A prolonged stretch of bad days could, but one day does not a disaster make,” he said.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see