The DuPont/Dow Merger: The Risks & The Strategies

By Andrew Rosen via

For over 40 years, Diversified has provided financial planning in Wilmington, Delaware. Fortunately, that has given us a heavy concentration of DuPont executive clients. Even though we’ve seen acquisitions and spinoffs through the years, each one is slightly different.   But, there are certain commonalities between them all.  With the looming Dow merger on August 31st, I thought this the perfect time to write this blog on what we’ve seen (as it pertains to stock and stock options) in the past.

What we know

The two companies are going to merge together, then split into three separate companies.  There will be casualties, as some divisions are sold off into other corporations.  Unless you are literally Ed Breen or Andrew Liveris, you may think you know your (or your groups) destiny.  Trust me, you don’t!   Prepare for the unexpected.  We also know if you are a stock holder, you will receive roughly a 1-1 trade in of your stock (either DuPont or Dow) into the new company DowDuPont.

What is likely to happen

This is where things get fun with your DuPont or Dow stock options (or restricted stock units).

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