Dow Chemical raises asset sale target by $1.5B-$2B


Dow Chemical (DOW +0.5%) says it will seek to raise up to $6B from asset sales, $1.5B-$2B more than its earlier target, as it plans to streamline operations by shedding old business lines it can no longer grow, CEO Andrew Liveris says.

The CEO does not say what else the company has decided to put on the block, but says additional sales will be profitable but slow-growth business units that are minor parts of DOW's portfolio, primarily in the functional materials and performance materials groups.

Activist investor Daniel Loeb of Third Point has been pushing DOW to go even further and split off its petrochemicals business and focus on specialty materials, but the company opposes such a move; a UBS analyst says DOW appears committed to deliver more value than the split-up proposal.

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Comments (2)
  • Lordparrot
    , contributor
    Comments (56) | Send Message
     
    Dow has been trying for a number of years to convince everyone that it is not a commodity driven company, but rather one in the specialty markets, with little success. Not sure if this latest push will finally convince someone
    19 Mar 2014, 05:44 PM Reply Like
  • sir Bradley
    , contributor
    Comments (2) | Send Message
     
    The ethylene cycle is all about supply and demand where imbalances shrink or swell margins. Liveris knows this, the employees know this and the investors know this.
    20 Mar 2014, 11:13 AM Reply Like
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