Warren Buffett Has Three Weeks To Show This Dow-DuPont Deal Isn’t So Great

Because the Oracle of Omaha likes nothing more than being rushed.

Ready to drown his sorrows the only way he knows how.

Warren Buffett is on the clock.

Unless he can make everyone see the inherent failings of this Dow-DuPont deal, he and his shareholders are out an easy quarter-billion dollars a year. And that, as Warren Buffett himself has said, would be... unwelcome.

Under the agreement Dow has with Berkshire, Dow earned the right in April 2014 to convert the stake into common shares if its stock price closes above $53.72 for 20 days in any consecutive 30-day trading period. While it has closed above that level a handful of times since it got the right to convert, it’s never held that level long enough for Dow to do the conversion.

But in the wake of the news about the deal talks, Dow shares are popping above that level again. In pre-market trading, its shares are up 11% to $56.39, a level the company hasn’t closed at since 2005.

Buffett May Get Dow Chemical Stock, But Regret It [WSJ MoneyBeat blog]