Wednesday, 24 August 2016
Last updated 3 hours ago
Feb 12 2014 | 11:11am ET
Dow Chemical has made it official: It will not spin-off its petrochemical business, as called for by Third Point's Daniel Loeb.
Dow didn't mention Third Point or Loeb, but said that a "review found that a break-up of the company in a significant manner (simplistically described as petrochemical and specialty chemical assets) created no productivity or capital allocation improvements, but rather negatively impacted Dow's value proposition which leverages scale, integration costs and technology benefits across multiple science-based, vertically-integrated value chains."
The rejection is not a surprise; Dow CEO Andrew Liveris was notably cool to the proposal last month and noted that he had the backing of Berkshire Hathaway chief Warren Buffett.