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I wrote, I suppose I need to check with DOW to get the exact wording of the tender offer.

It appears the details of the tender offer are not available on the DOW website; but there is an announcement here:

The announcement refers to a reference security - the T-Bill that matures 11/15/2040. E*Trade is quoting that security at 94.671875 / 94.765625.

Add 290 basis points and you get a maximum offer of 97.665625 + $30 for an early tender. That works out to a current offer of only $1006.66 per bond.

That's under market (currently 101.375) and far below what I'd be willing to give them up for... Recent trades had them as high as 108.375 - a price I'd probably be willing to accept, but I'd be unlikely to get any time soon.

Unless I misunderstand the tender's terms, I'll be surprised if they are able to actually meet their redemption targets.

- Joel
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