Group-3

Chaitanya verma- 19111

Maddula N K Srikar – P19050

Ashwin Joshi – P19075

Opinion from Dow chemicals Perspective:

For closing the deal funding options:

 Dow need to raise the cash, but due to block in PIC deal, they were not in position to get
cash to fund the rohm deal.
 Either they need to cut the streak of paying dividends to shareholders.
 Financing from the financial markets to maintain liquidity is very tough in these stress
conditions of crisis.
 Asset sale can be a option but will cut down the reputation and ratings of the dow chemicals
 Taking the full amount from bridge loan will hamper the credit rating because of debt
repayment incapability by the company, also following the covenants and abiding to them is
difficult in these stress conditions in terms of leverage ratio and cash flows.

Reasons for not closing the deal or delay and renegotiate the deal:

 Not having enough cash to close the deal. So we need to renegotiate and delay for making
this deal complete.
 Dow can recover the break up fee from K-Dow by planning to sue the K-Dow for failed deal.
 Use the breakup fee to fund the deal as there is no enough liquidity in the markets to raise
capital.
 Dow can renegotiate for extending the maturity of the bridge loan. It can then look for long
term options after a while when the markets open up again

So we recommend not to proceed with the deal at this point of time may be wait or proceed with
the renegotiations deal structure.