News Column

Third Point Announces Stake in Dow Chemical

January 21, 2014
dow chemical

NEW YORK (AP) Hedge fund Third Point LLC says it has acquired a stake in Dow Chemical and wants the company to spin off its petrochemicals division.

Dow Chemical Co. shares jumped $2.25, or 5.2 percent, to $45.32 in morning trading after rising as high as $46.70 earlier.

Third Point says Dow is now its biggest investment. It said Dow stock has performed poorly compared to other chemical stocks and the S&P 500 and said a spinoff of the petrochemicals business would deliver more value for shareholders.

Media reports said Third Point paid $1.3 billion for the stake.

Dow sold its polypropylene licensing and catalysts business in October and said it wanted to raise $3 billion to $4 billion by divesting other businesses. In December Dow said it wanted to spin off or sell about 40 manufacturing plants.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Original headline: Third Point says it bought stake in Dow Chemical


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