Rogers ( NYSE: ROG ) pared losses after dropping for two days in a row in what may be some investor concern about the company's planned sale to Dupont ( NYSE: DD ) as a Chinese review continues.
On Tuesday Rogers ( ROG ) fell 2.2% possibly in the wake of a BMO note that was done after the analyst held meetings with Dupont ( DD ) top management, including CEO Ed Breen.
Management still remained confident in getting the Rogers ( ROG ) deal done for a Q3 close, though the company admitted that the review process in China is being delayed, BMO analyst John McNulty wrote in a Tuesday note. Dupont told BMO that conversations with regulatory agencies have been "straight-forward" and there aren't any unresolved issues from DD's side.
BMO's McNulty sees the possible of Rogers ( ROG ) deal price change if the transaction is not closed by the Nov. 1 outside date, especially as it appears the business is "clearly running under" managements' estimates for $270 million in 2022 EBITDA.
In addition, McNulty wrote that in the possible scenario where the Rogers ( ROG ) deal falls through, Dupont ( DD ) management doesn't plan to make another large and acquisition and will focused "heavily" on share repurchases. BMO has an outperform and $80 price target on Dupont.
The BMO note on Tuesday followed a 2.8% uptick in Roger's ( ROG ) shares on Friday in the wake of a report that China's antitrust review of Dupont's ( DD ) planned $5.2 billion purchase may be moving along. The antitrust review process by China's State Administration for Market Regulation appears to be moving along and engagement may start soon, according to traders, who cited a report that was circulating on Friday.
For further details see:
Rogers pares losses even amid some concern over Dupont sale