The deal was peddled as a merger of equals. By my calculations I found the following:
Closing price day after 2014 EPS announcement (to adjust for market pricing in EPS announcement):
DOW - 48.26
DD - 68.12
2014 annual earnings report:
DOW - 2.87
DD - 3.92
Shares received by shareholders:
DOW - 1
DD - 1.282
EPS (using the 2014 values) of combined company:
2.9755
EDIT: Looked at the numbers over and realized existing shares are being swapped for shares in the new company or retired. Therefore, the deal is Accretive to DOW shareholders. Still, what are mergers of equals if one company's earnings are diluted while the other isn't?
Something is wrong with your math there, a merger can't be dilutive to both groups of shareholders because it's a zero sum game (excl transaction costs).
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