Fund Manager Says Dow Merger Still Possible

New York, NY, Feb. 5, 2009--Paulson & Co., the hedge fund run by billionaire John Paulson, urged Dow Chemical Co. to tap a $13 billion bridge loan to help complete its stalled takeover of Rohm & Haas Co.

Dow also should cut its dividend and sell common shares and bonds to pay off the bridge financing, New York-based Paulson said today in a statement distributed by PR Newswire. Paulson, which manages $29 billion, is Rohm & Haas’s second-largest shareholder.

Dow Chief Executive Officer Andrew Liveris has said that completing the $15.4 billion Rohm & Haas takeover without better financing or asset sales would be a “catastrophe.” Dow said earlier this week that it still is committed to the merger and is seeking new terms from Citigroup Inc. and other lenders that have committed to the bridge financing.