Dow Chemical’s board reaffirms support for DuPont deal

According to people familiar with the matter, Mr. Loeb believes unanswered questions about leadership, the board and the breakup signal the deal was rushed. DuPont declined to comment. Loeb’s firm has a two per cent stake in Dow, according to FactSet. Loeb had urged Liveris to separate Dow’s plastics and petrochemicals operations from faster-growing businesses such as crop seeds. Last year, he brought attention to the stock’s underperformance, and initiated alternate methods to pressurize the company, after which Dow had to turn over two board seats.

Dow Chemical spokeswoman Rachelle Schikorra told Reuters: “Dow’s Board of Directors, including Third Point’s two designated directors, are unanimously and fully supportive of the announced merger of equals with DuPont and intended separation”. “We stand by both our and DuPont’s boards’ unanimous decisions to conduct this transaction”. There he got to work with Klein, a member of Citigroup’s management committee.

Directors on Dow’s board supported the deal and Liveris in comments provided to Reuters. After the merger, Liveris would be named executive chairman of DowDuPont and DuPont’s Edward Breen will be CEO. Earlier this month, Loeb complained about Dow’s shareholder returns and called for a search for a new CEO, the person said. But the significant role the activists have played in the recent history of both companies is the latest sign of how consequential such investors have become. Trian Fund Management has argued that the company should be broken up to save costs. The fund, however, lost a proxy contest in May, and now supports the merger deal. Dow and DuPont shareholders will each own about 50 percent of the combined company. However, Loeb is said to support the merger deal.