Home / Knowledge / News / Textiles / NY hedge fund acquires large stake in Dow Chemical
NY hedge fund acquires large stake in Dow Chemical
30
Jan '14
New York (NY) based hedge fund management firm Third Point has acquired a massive stake in the US multinational chemical corporation Dow Chemical, and is urging the company to consider severing its petrochemical business and focus on specialty materials.
 
The stake in Dow Chemical, although not revealed, is currently the largest investment made by the NY hedge fund firm led by Daniel Loeb, states the fourth quarter investor letter of 2013 released by Third Point.
 
The letter states Dow’s shares have woefully underperformed over the last decade generating a return of 46 percent, including dividends, and these results reflect a poor operational track record across multiple business segments, a history of under-delivering relative to management’s guidance and expectations.
 
According to Third Point, the company’s weak performance is even more surprising given that the North American shale gas revolution has been a powerful tailwind for Dow’s largest business exposure, which is petrochemicals.
 
The NY hedge fund management firm believes “Dow would best serve shareholders’ interests by engaging outside advisors to conduct a formal assessment of whether the current petrochemical operational strategy maximizes profits and if these businesses align with Dow’s goal of transforming into a ‘specialty’ chemicals company.”
 
“The review should explicitly explore whether separating Dow’s petrochemical businesses via a spin-off would drive greater stakeholder value”, the letter states.
 
Dow Chemicals, based in Midland, Michigan, is the second-largest chemical manufacturer in the world by revenue, and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont).
 
The company engages in manufacturing of various chemicals including polypropylene, acrylates, ethylene, polyolefins, polyethylene, as well as specialty chemicals, and other products.
 

Fibre2fashion News Desk-India

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search