Boston, MA 11/24/2014 (wallstreetpr) – Dow Chemical Co (NYSE:DOW) CEO, Andrew Leveris, has quashed suggestions that the company was thinking of withdrawing completely out of Kuwait. The remarks came in the wake of the company suggesting that it was rethinking its strategy in the country after reducing equity positions in all its assets in the country.
Leveris has reiterated that the company is shifting its focus from simply dealing in commodities for the sake of it as focus shifts to high margin entities. As part of a larger divestiture plan that could clock highs of between $7 and $8.5 billion, Dow Chemical Co (NYSE:DOW) plans to reduce all its equity position in Kuwait. The move is intended to accord the company with additional capital that it can use for other strategic purposes.
Dow Chemical Co (NYSE:DOW) has not shed light on what it intends to do with any financing that will be recouped from the divestiture plan. Kuwaiti state agency has already stated that the government was planning to offer to the public any stakes that the company will offload in the coming future.
Loeb and Dow Chemical Settle Standoff
The remarks by Leveris comes in the wake of Dow Chemical Co (NYSE:DOW) averting a potential proxy fight with Dan Loeb’s hedge fund. The two parties came to a settlement with the agreement that both parties will add two members into the company’s board. Third point was reportedly ready to push forward with a proxy context had the talks completely broken down.
Third Point and Dow Chemical have reportedly agreed to a one-year standstill agreement which means neither party will go forth and criticize the other. The agreement was reached after Dow Chemical agreed to add Third Point’s two board members appointees. The company also added two additional members of its own consequently diluting Third Point effect on the board.
Loeb has been vocal on his push to have Dow Chemical Co (NYSE:DOW) offload its lucrative but slow-growing petrochemical business.
Price and volume action was seen in The Dow Chemical Company (NYSE:DOW) in yesterday’s and today’s session, most of the action is tilted towards negative side. The Dow Chemical Company (NYSE:DOW) is currently trading above its 20-Day EMA of $50.44 and RSI of 63.60.