Dow Chemical to Sell Coatings Unit

NEW YORK (TheStreet) -- Dow Chemical(DOW Quote) was able to gladden market players Thursday with a presentation to investors and further moves to raise cash so that it can reduce a heavy debt load brought on by its troubled acquistion of Rohm & Haas.

Top Dow executives were in New York Thursday for an investor and media pitch day. They also conducted a conference call with investors, in which they attempted to allay fears that the company had been set back by the Rohm deal and over-encumbered with debt.

Dow's chief, Andrew Liveris, said during the call that Rohm's business will add 10% to the combined company's top line, according to a Reuters report, and will produce per-share earnings in 2012 of $4 to $4.50.

In keeping with all the Rohm-related talk, Dow before the bell announced an agreement to sell its powder-coatings division to Dutch chemicals maker Akzo Nobel. Though the sum was undisclosed, Dow did say that its moves to shed businesses, including the most recent sale, are on track to bring in more than $3.5 billion. The proceeds will likely be used to help service and pay down its merger-related loans.

Shares of the Midland, Mich.-based company shot higher by nearly 8% early in the regular session. At about 10:30 a.m. EDT, the stock was trading at $28.74, up $2.03, on volume of 7.8 million shares. Daily turnover in the name averages about 13.3 million.