WSJ: Third Point's Loeb Seeks Removal Of Dow Chemical CEO

(RTTNews) - Activist investor Daniel Loeb of hedge fund Third Point LLC has called for the removal of Dow Chemical Co.'s (DOW) chief executive officer Andrew Liveris following the company's agreement to merge with EI DuPont De Nemours & Co. or DuPont (DD), the Wall Street Journal reported Sunday.

DuPont and Dow Chemical said Friday that their boards of directors have unanimously approved an agreement for an all-stock merger of equals. The combined company will be named DowDuPont. Dow and DuPont shareholders will each own about 50 percent of the combined company.

According to the WSJ report, Loeb sent a private letter to Dow Chemical's board on Saturday, a day after the merger was announced.

In the letter, Loeb reportedly raises questions about the deal's timing and asks whether the deal was rushed to be completed before a stand-still agreement that prevents Loeb from publicly speaking about Dow Chemical expired during the weekend. However, Loeb is said to support the merger deal.

But Dow Chemical's directors, including a director appointed to the board at the behest of Third Point, have reportedly defended the deal.

Third Point, which has acquired a nearly 2 percent stake in Dow Chemical, called for a breakup of the company last year. At that time, Dow rejected the split proposal.

In November 2014, Third Point initiated a proxy fight and Dow agreed to turn over two board seats to the hedge fund's nominees.