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.