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Tuesday, February 27, 2007

BARRIE BARBERTHE SAGINAW NEWS

Robert Van Deventer has listened to speculation for the past three decades about a takeover of Midland-based Dow Chemical Co. by outside bidders.

So Van Deventer, president and chief executive officer of the Saginaw County Chamber of Commerce, doesn't put much stock in the latest talk of a $54 billion purchase of the chemical giant.

Dow employs 5,700 people in mid-Michigan, including more than 800 Saginaw County residents, according to the company. It posted $49.1 billion in sales and a $3.7 billion net income in 2006. It is 36th on the Fortune 500 list.

"This seems to pop up once in a while," Van Deventer said. "I don't think there are any facts associated with it, other than it's a rumor."

A British tabloid, the Sunday Express in London, reported that Blackstone Capital Partners, Carlyle Group and KKR Financial Corp., among others, have shown interest in joining forces for a leveraged buyout of the company.

Dow spokesman Chris Huntley wouldn't comment on the report about his company, which employs more than 43,000 worldwide and has an indelible imprint on mid-Michigan, from the TheDow Event Center in downtown Saginaw to the Dow Diamond baseball stadium under construction in Midland as the future home of the minor league Great Lakes Loons.

"We don't comment on rumors or speculation about Dow or its activities," he told The Saginaw News.

Huntley did say, however, that chemical industry security analysts are "almost universally dismissive of this rumor having credibility."

Van Deventer said Dow in recent months has stated its commitment to staying in mid-Michigan.

Talk pushes stock up

http://www.mlive.com/enter/index.ssf?/business/sanews/index.ssf%3f/base/business-2/1172589758192130.xml&coll=9&thispage=2