Dow Chemical Says Board Of Directors Supports Merger With DuPont - Quick Facts

(RTTNews) - Dow Chemical Co. (DOW) said its board of directors, including Third Point's two designated directors, are unanimously and fully supportive of the announced merger of equals with EI DuPont De Nemours & Co. or DuPont (DD) and intended separation.

Dow Chemical said in a statement, "This merger is the optimal path forward and a win for all of our shareholders. We stand by both our and DuPont's Boards' unanimous decisions to conduct this transaction, and are fully focused on achieving the successful integration of both powerhouse companies."

The Wall Street Journal had reported Sunday that activist investor Daniel Loeb of hedge fund Third Point LLC has called for the removal of Dow Chemical's chief executive officer Andrew Liveris following the company's agreement to merge with DuPont.

Last Friday, DuPont and Dow Chemical said their boards of directors have unanimously approved an agreement for an all-stock merger of equals. The combined company, with around $130 billion of market capitalization, will be named DowDuPont. Dow and DuPont shareholders will each own about 50 percent of the combined company.

Initially DuPont and Dow will merge its agriculture, material science and specialty products and subsequently pursue a tax-free spin-off into three independent, publicly traded companies in 18 to 24 months after closing of the merger.