Dow Chemical Says Fundamentally Disagrees With Third Point Position

(RTTNews) - Dow Chemical Co. (DOW) said Thursday that it fundamentally disagrees with the position outlined by its shareholder Third Point LLC in its statement and website.

The statements contained therein display a fundamental lack of understanding of the company and an approach by an activist investor that has little interest in anything that benefits the many long-term shareholders in Dow, the Midland, Michigan-based chemicals maker said.

"Our Board and management team are aggressively pursuing the best interests of all shareholders and managing the business for both the short- and long-term. Nothing takes priority over our focus on running the business and driving sustainable long-term value for shareholders - as evidenced by our consistent performance in increasing earnings, growing margins and enhancing shareholder returns as was outlined during our comprehensive investor event just this week", Dow said in a statement.

Activist investor Daniel Loeb's Third Point on Thursday announced several initiatives in its effort to press Dow Chemical for change. Third Point said it has launched www.Value-Dow.com, a website designed for proactive shareholder engagement. The site includes a video narrative detailing how Dow has fallen behind due to poor strategic decision-making by a management team and Board best known for their track record of broken promises to shareholders.

Third Point also said it has created an advisory board comprised of R. Steve Miller, the current Chairman of American International Group Inc. (AIG) and Raymond Milchovich, former CEO of Foster Wheeler AG (FWLT), who are providing guidance on how Dow can increase value.