NEW YORK (TheStreet) -- Dow Chemical (DOW) - Get Dow, Inc. Report stock is down by 0.56% to $50.01 in early afternoon trading on Monday, after a report said BASF (BASFY) could make a counter-bid for DuPontCo. (DD).
BASF, a German chemical producer, may make an offer to compete with Dow's merger with Dupont, sources told Bloomberg.
However, a merger between BASF and DuPont is not feasible, TheStreet's Jim Cramer wrote in an Action Alerts PLUS article today. Dow is a holding of Cramer's charitable trust.
A deal between BASF and DuPont would face antitrust barriers as well as high integration and legal costs from both companies, Cramer said. The deal wouldn't make sense "strategically or financially" for either company, he added.
"We wouldn't rule out the possibility of BASF emerging as a buyer of certain assets Dow/DuPont may be required to divest in order to secure antitrust approval for the merger," Cramer and Research Director Jack Mohr said in the article. "That said, when it comes to the possibility of DuPont breaking off with Dow in lieu of BASF, it is quite clear the juice is not worth the squeeze."
Based in Midland, MI, Dow is an integrated science and technology company.
(Dow Chemicalis held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: DOW