(NYSE:DOW) shareholder and CEO of hedge fund Third Point, demanded removal of Dow CEO Andrew Liveris in a letter on Saturday, the Wall Street Journal reported earlier today.
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Dow’s directors, including one appointed to the board previous year at the behest of Third Point, are defending the deal and Liveris, calling the timing complaint “ridiculous” and “laughable”.
Liveris came under attack past year from Loeb, whose Third Point had acquired a 2 percent stake in Dow.
DuPont and Dow Chemical said Friday that their boards of directors have unanimously approved an agreement for an all-stock merger of equals. He and the other directors defended the company’s results and the DuPont deal. “We stand by both our and DuPont’s Boards’ unanimous decisions to conduct this transaction, and are fully focused on achieving the successful integration of both powerhouse companies”, Schikorra said.
Eight Dow board members issued individual statements in support of management and the merger agreement. Mr. Liveris is to be executive chairman of the combined company, while DuPont CEO Edward Breen is to maintain that title at the new group.
In November 2014, Third Point initiated a proxy fight and Dow agreed to turn over two board seats to the hedge fund’s nominees. Dow said in February it had “reached an amicable settlement” with the former employee.
This is not the first time the activist investor has criticized the company. Mr. Loeb supports the merger, which would create an agriculture and chemical giant now valued at more than $120 billion before breaking it up into three parts.
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DuPont was 0.1 percent lower at $69.70 at 7:16 a.m. before the start of regular trading in NY while Dow dropped 0.5 percent to $53.09.
