Bloomberg – Paulson & Co., the hedge fund run by billionaire John Paulson, urged Dow Chemical Co. to slash its dividend, sell new stock and issue bonds to pay for the stalled $15.4 billion takeover of Rohm & Haas Co.
Dow should tap its committed $13 billion bridge loan and $4 billion of equity financing to complete the deal, which was supposed to close Jan. 27, Paulson said today in a statement. Dow could then repay the bridge financing with $4 billion of new equity and $5 billion of new bonds. Paulson, which manages $29 billion, is Rohm & Haas’s second-largest shareholder.
