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Dan Loeb Goes Activist On Dow Chemical, Reveals DOW As Largest Position, Urges Spin Off Of Petrochem Business

Tyler Durden's picture




 

In a letter posted moments ago on Hvst.com, activist Dan Loeb announced that currently the largest investment of his Third Point is Dow Chemical, where he proceeds to use the usual hack-attack "spin off" proposal , and urges Dow to sell its upstream and downstream Petrochemical businesses (as Dow Petchem Co), about which it says, "the benefits from a spin-off far outweigh the supposed integration benefits." The reason: "Dow shares have woefully underperformed over the last decade, generating a return of 46% compared to a 199% return for the S&P 500 Chemicals... in April 1999 an investor could have purchased Dow shares for the same price that they trade at today." Now imagine where those shares would trade without $10 trillion in liquidity pumped by the central banks. We wish Loeb all the best: recall that precisely this strategy did not quite work out with Sony. The good news: George Clooney will hardly give a rat's ass what Dan Loeb does with some obscure "chemical" company, and thus Loeb's invites to the Hollywood party circuit are secure.

Full letter below:

 

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Tue, 01/21/2014 - 10:02 | 4351336 buzzsaw99
buzzsaw99's picture

Loeb just wants to flip it to the pension funds. Flip that POS stock, activist style.

Tue, 01/21/2014 - 10:07 | 4351353 Fredo Corleone
Fredo Corleone's picture

Yet another parasite seeking to exploit a host for its own nourishment.

Tue, 01/21/2014 - 10:08 | 4351355 Divided States ...
Divided States of America's picture

Stop riding Loeb's cock Tyler...as well as that of senile Icahn's. We dont give a rats ass.

Tue, 01/21/2014 - 10:11 | 4351359 buzzsaw99
buzzsaw99's picture

He struts around Sony with his 7% share like he owns the place. he gots big ballz. lulz

Tue, 01/21/2014 - 10:37 | 4351429 Occident Mortal
Occident Mortal's picture

He struts around Sony with his 7% share like he owns the place.

 

Erm...

Tue, 01/21/2014 - 10:15 | 4351369 disabledvet
disabledvet's picture

more bullets! more bullets!

Tue, 01/21/2014 - 10:43 | 4351441 Blankenstein
Blankenstein's picture

 

Another  "activist" plundering a company and causing 6000 people to lose their jobs.  

 

"This year, a Wall Street hedge fund called Jana Partners invested more than $300 million in Safeway stock and demanded that the company make changes, notably that it exit "subscale and lower margin geographies." 

 

That demand was made public Sept. 17.

About three weeks later, on Oct. 10, Safeway announced that its struggling chain of more than 70 Dominick's stores would be shuttered Dec. 28. The decision meant as many as 6,000 employees could lose their jobs right after Christmas, and that customers who shopped at Dominick's stores throughout the Chicago region would need to find other places to buy groceries."

 

http://articles.chicagotribune.com/2013-12-22/business/ct-biz-1222-confi...

 


"The hedge fund founded by Barry Rosenstein, along with a big pension fund, bought a large slug of McGraw-Hill stock and is pressing for a breakup of the 123-year-old company. So who are these guys?"

"The activist M.O. is to scoop up corporate investments and then loudly clamor for sales of laggard businesses, stock buybacks or major strategic shifts they hope will juice the companies’ value."


 

http://blogs.wsj.com/deals/2011/08/01/jana-partners-who-are-these-guys/

 

 

Tue, 01/21/2014 - 11:04 | 4351488 spooz
spooz's picture

Dow also got a step closer to having USDA approval of its "Agent Orange" corn, with its approval recommended in a USDA Environmental Impact Statement.  Dow's "Enlist" (2,4-D) is engineered to beat the superweeds that resulted from overuse of Monsanto's Roundup-ready corn (kind of like antibiotic resistance).  The ever expanding cocktail of chemicals they throw on our food supply will now potentially include this component of "Agent Orange".  But hey, immune system cancers, Parkinson's disease, endocrine disruption and reproductive problems are a small price to pay for increased corporate profits. Could be a good time to buy some Dow stock! The idiot consumers can just stop eating corn and soy if they have a problem with it.  

http://www.centerforfoodsafety.org/press-releases/2811/agent-orange-crop...

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