Third Point Critiques Dow’s Strategy | Chemical & Engineering News
Volume 92 Issue 19 | pp. 16-17 | Concentrates
Issue Date: May 12, 2014

Third Point Critiques Dow’s Strategy

Department: Business
Keywords: activist investors, hedge fund, petrochemicals

In an investor letter, Daniel S. Loeb, who heads the hedge fund Third Point, a major activist Dow Chemical shareholder, said the largest U.S. petrochemical maker should be earning $2.5 billion more than it currently does. Loeb compared Dow with LyondellBasell. Dow has 30% more petrochemical capacity, he noted, and yet both companies earn the same amount from petrochemicals. He blamed Dow’s strategy of integrating petrochemicals with downstream specialty derivatives, which he said is adding more administration, R&D, and other expenses compared with leaner competitors.

 
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ISSN 0009-2347
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