Union Carbide Deal by Sept. 30
|MIDLAND, Mich. (Reuters) - Dow
Chemical Co. (DOW.N) said on Tuesday it does not expect its merger with Union Carbide
Corp. (UK.N) to be completed by Sept. 30, although it could still happen in the third
Dow also declared a quarterly dividend of 29 cents a share, unchanged from the previous quarter. The dividend is payable Oct. 30 to holders of record Sept. 29. The company said it hoped to boost its quarterly payout by 15.5 percent. But in order for the Union Carbide merger to qualify under "pooling of interests" accounting rules, Dow said it could not increase the dividend until the deal was completed.
J. Pedro Reinhard, Dow's chief financial officer, said in a statement that the chemical concern still expects to increase the dividend to 33.5 cents a share.
"We remain very confident that we will complete the merger in the near future, and we are actively working with regulatory authorities to bring this process to a successful conclusion," he said."
First announced in August 1999, the $7.8 billion deal had been expected to close in the first quarter, but was delayed by regulatory reviews.