The Dow Chemical Company (NYSE:DOW) shares moved up $2.63, or 5.91%, to $47.10 in early trading today after takeover rumors surfaced in the London's Sunday Express. The British tabloid reported that Middle Eastern investors have put a package together with U.S. buyout firm KKR in what would be a $52 to $58 per share bid. KKR would reportedly put up half of the bid with investors from Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates and Oman would put up the rest.

The company declined to comment on the rumors, but noted tha this is a follow-up to a report by the same newspaper in London that was widely dismissed by industry analysts as lacking any substance. The first rumors came back in February, when the Sunday Times reported that private investors were interested in bidding for the company in a deal that could be worth up to $60 per share. Analysts both now and then note that any unsolicited deal for Dow would likely be treated as very hostile by management as a breakup of the company wouldn't make much sense given the company's stated strategy. So, while the situation may be worth watching, take this optimism with a healthy dose of reality!

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