Dow Chemical CEO Andrew Liveris participates in a business leaders panel discussion as part of the U.S.-Africa Business Forum in Washington, in this August 5, 2014 file photo. REUTERS/Jonathan Ernst/Files
November 5, 2015
(Reuters) – Dow Chemical Co Chief Executive Andrew Liveris has been meeting portfolio managers, CNBC reported on Thursday, citing sources.
The meetings come ahead of the expiration of a one-year standstill agreement with activist investor Daniel Loeb, whose hedge fund Third Point LLC owns a nearly 2 percent stake in Dow Chemical.
The company averted a proxy fight with Third Point last year by agreeing to add four independent directors to its board.
Dow Chemical board member Ruth Shaw was also part of the meetings.
Shaw told the investors that Third Point’s attack was a distraction, forcing the company to defer resources away from Dow’s day-to-day business, according to one of the sources. (http://cnb.cx/1Rz2Cy0)
Dow said last month it would “review all options” for its farm chemicals and seeds unit, which has reported falling sales for nearly a year.
Third Point, which owns a 1.99 percent stake in Dow, had been pressuring the company to spin off its specialty chemical units from its petrochemical businesses.
“Our financial performance over the last three years demonstrates both the value of our strategy and quality of our execution against it,” Dow Chemical spokeswoman Rachelle Schikorra said in an email, adding that the company is “very clear” about its strategic priorities.
“We welcome ongoing opportunities to engage with our owners on these topics,” Schikorra said.
Third Point declined to comment.
(Reporting by Shubhankar Chakravorty in Bengaluru; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)