Third Point Assails Dow's 'Lack Of Transparency,' 'Undistinguished Track Record'

Feb 13 2014 | 11:49am ET

Third Point's Daniel Loeb has lashed out at Dow Chemical after the company formally rejected his break-up proposal.

Dow said yesterday that an internal review had determined that Loeb's plan to spin-off its petrochemical business would have "negatively impacted Dow's value proposition." But Loeb isn't known for taking "no" for an answer, or for holding his tongue, and let loose following the rejection.

The activist hedge fund manager blasted the "lack of transparency" surrounding the internal review, noting "we know neither the methodology nor ever the advisers used to arrive at its decision."

"Transparency," Loeb noted, "is essential considering Dow's undistinguished track record of capital allocation decisions."

Loeb added that Third Point would even sign a non-disclosure agreement if Dow allowed it to review its books.

Third Point's stake in Dow is now its largest, Loeb told investors. The firm has not disclosed exactly how large it is, however.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of