Thursday, April 12, 2007

DOW Sacks Two Senior Executives: Corporate Accountability In Action

Dow Fires 2 Executives for Unauthorized Merger Talks
By Patrick McKiernan
April 12 (Bloomberg) -- Dow Chemical Co., the largest U.S. chemical maker, fired two executives it said held unauthorized discussions to sell the company.
Board member Pedro Reinhard, 61, who was the former chief financial officer, and Romeo Kreinberg, executive vice president of performance businesses, ``were engaged in business activity that was highly inappropriate,'' Midland, Michigan-based Dow said today in a statement.
The ``misconduct was first disclosed'' on April 10, and the executives ``were terminated this morning with full support of the board,'' the company said.
Dow's shares jumped 4.9 percent on April 9 after Britain's Sunday Express reported U.S. buyout firms and Middle Eastern investors were preparing a takeover bid of at least $50 billion. The stock surged 5.6 percent on March 15 on speculation Dow would merge assets with India's Reliance Industries Ltd. The Times of India said on Feb. 26 that Reliance may bid for Dow.
Dow directors on April 9 said they had held no talks on a leveraged buyout and reiterated support for Chief Executive Officer Andrew Liveris's strategy.
Dow rose 77 cents, or 1.7 percent, to $45.86 at 10 a.m. in New York Stock Exchange composite trading. Before today, the shares had gained 14 percent in the past year.


Sphere: Related Content

No comments: