Deals
Third Point's Loeb Suggests Carving DowDuPont Into Six Companies
- Dow, DuPont have plans to create 3 companies after merger
- Switching units in the spinoffs may add $20 billion in value
This article is for subscribers only.
Dow Chemical Co. and DuPont Co. should consider creating six focused companies after their planned merger, twice as many as planned, to improve the investment potential of each, said activist shareholder Dan Loeb.
Changing the composition of the three spinoffs that Dow and DuPont already plan after their $78.7 billion merger could create $20 billion of additional value, according to a presentation posted Wednesday on the website of Third Point, the hedge fund founded by Loeb. Further splitting the proposed companies focused on agriculture, materials and specialty products would create even more value.