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Mon, Feb. 8, 3:14 PM
- Dow Chemical (DOW -2.1%) is upgraded to Positive from Neutral with a $54 price target, up from $46, at Susquehanna, even after rising nearly 12% in the past week.
- The firm says it remains positive on the combined company's agriculture segment given Dow and DuPont's (DD -2.6%) pursuit of cost reductions in ag prior to the H2 2016 merger closure, and its expectation of $1.25B of cost (primarily R&D) and $500M of growth synergies.
- The firm says it completed a revised valuation, changing the approach to now "apply the equity ratio to the pro-forma capital structure resulting in a 50/50 split," taking into consideration the Dow-DuPont combined entity.
- DuPont already had been rated Positive by Susquehanna, but now with a lowered price target of $69 from $77.
Tue, Feb. 2, 10:58 AM
- Dow Chemical (NYSE:DOW) CEO Andrew Liveris will leave the company after the completion of its merger with DuPont (NYSE:DD), he says during the company's earnings conference call.
- The move would mark a victory for Dan Loeb, who had called for his removal.
- Earlier: Dow Chemical beats estimates as cost cuts pay off
- DOW +2.8%, DD +2.4%.
Tue, Jan. 5, 7:28 AM
Dec. 18, 2015, 12:17 PM
- Interim Syngenta (SYT +2.1%) CEO John Ramsay tells Dow Jones the company is discussing possible deals with "a number of parties" and is open to combinations with companies including Monsanto (MON +0.9%).
- While Ramsay says MON has not revived its $46B takeover effort that was abandoned in August, his comment that SYT is "interested in any value-adding opportunity that exists for us in this industry, which includes Monsanto and many others" marks a notable departure from its earlier stand.
- Last week's merger between DuPont (DD -0.7%) and Dow Chemical (DOW -0.4%) removed two potential partners for SYT and eventually could pose a greater competitive threat in the ~$100B global seed and pesticide industry.
Dec. 18, 2015, 8:26 AM
Dec. 14, 2015, 12:27 PM
- DuPont (DD -3.2%) is downgraded to Hold from Buy with a $75 price target at Jefferies, which expects the stock to be stuck in a rut following the announcement of its plan to merge with Dow Chemical (DOW -3.8%).
- The firm expects DD’s shares now will be driven less by agriculture newsflow and more by details relating to cost synergies, levers to deliver growth synergies and risks to Dow’s petrochemical chain margins.
- Jefferies expects the merger to result in the creation of a strong player in agrichemicals, seeds and agronomy, and petrochemicals, and an innovator in industrial biotech and nutrition, but that integration and end-market risks are likely to restrict the value of DD’s shares through late 2016.
Dec. 11, 2015, 12:27 PM
- Dow Chemical (DOW -3.5%) and DuPont (DD -5.5%) remain sharply lower after their merger news, giving back gains sparked by the earlier speculation around a deal, as the companies "missed several significant opportunities for long-term value creation," according to Bernstein analysts.
- DuPont shares are taking the worst of it, as it also announced restructuring plans including a 10% cut to its global workforce, and gave downbeat comments on its 2016 sales growth.
- DuPont CEO Edward Breen and Dow's Andrew Liveris said in a morning conference call that the planned breakup into three separate business would occur "as soon as feasible" but that it still could take up to two years after the merger closes, suggesting the breakup may not occur until 2018.
- Breen also said no major divestitures were expected as the deal goes before antitrust reviewers, with both companies likely to sell minor pieces of their businesses "but nothing that would move the needle."
- Liveris hinted at an eventual retirement, saying there would "almost certainly" be a new leader of the materials company, and that "I do want to eventually go to the place where the future of the company is not just beholden to my presence."
Dec. 11, 2015, 9:16 AM
Dec. 11, 2015, 7:40 AM
- Separate from its merger news, DuPont (NYSE:DD) announces a 2016 restructuring plan designed to cut $700M in costs from 2015.
- DuPont says the cost cuts include a range of structural actions across all businesses and staff functions, affecting 10% of its global workforce: the company had ~63K employees at the end of 2014.
- DuPont expects to book a pretax charge of $780M related to the cuts.
- DuPont says it expects 2016 sales growth will be "challenging," given global economic conditions in agriculture and emerging markets; it foresees currency headwinds of ~$0.25/share, due to the continued strengthening of the U.S. dollar primarily against the Brazilian real.
- DD -3.4% AH.
Dec. 9, 2015, 12:10 PM
- Any merger between Dow Chemical (DOW +10.5%) and DuPont (DD +12.6%) would have far-reaching consequences for European rivals, prompting a series of moves as pesticide and seed makers scramble to face a combined U.S. giant.
- A merger would make it more likely that Monsanto (MON +0.2%) re-approaches Syngenta (SYT +7.7%), Bernstein analysts say, speculating that a new bid could come in at 485 Swiss francs, more than the 470 cash-and-stock offer withdrawn in August.
- The pressure on MON to defend its position as the biggest seeds player would be "huge" as chemical companies will want to defend or even strengthen their market positions, says MM Warburg's Oliver Schwarz.
- Regulatory hurdles to a merger would require the combined company to sell off some businesses, likely sparking interest from contenders such as BASF (OTCQX:BASFY -0.1%), Schwarz says. “All the big companies that are swimming in this pond would probably be interested in taking over assets that Dow or DuPont would sell."
Dec. 9, 2015, 9:16 AM
Dec. 8, 2015, 7:52 PM
- The WSJ reports chemical giants Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) are in advanced merger talks, and that a deal could be announced in the coming days.
- The paper adds a deal would be followed by a "three-way breakup of the combined company," DuPont CEO Edward Breen would be CEO of the post-merger company, and Dow CEO Andrew Liveris its executive chairman.
- DOW +4.3% after hours to $53.10. DD +5.1% to $70.00. Each company has a market cap near $60B.
Oct. 28, 2015, 3:58 PM
- DuPont (DD +1.6%) moves higher following reports that Nelson Peltz secretly met with the board and interim CEO Edward Breen to push his plans for major structural reforms at the company.
- The meeting last week is said to be a first between the activist shareholder and the company since CEO Ellen Kullman’s resignation early this month; some analysts have speculated that Peltz may have an easier time selling Breen on his changes, since the interim CEO has a background in corporate restructurings while CEO of Tyco.
- Deutsche Bank raises its stock price target to $70 from $63, seeing Breen as well positioned to become permanent CEO in the next few months, which augurs well for a break-up of DuPont, and Breen says he has had discussions with CEOs of other ag companies regarding consolidation in the industry.
Oct. 27, 2015, 2:42 PM
- DuPont (DD +2.7%) pushes higher after interim CEO Edward Breen said in this morning's earnings conference call that the company was considering a sale of its agricultural unit.
- DuPont will take a "fresh look" at its cost structure and capital allocation strategy, Breen said, even as cost cuts made up $0.10 of Q3 operating earnings of $0.13; DuPont could raise its cost-cutting target by 10%-20% once it undertakes a more thorough operational review, says SunTrust analyst James Sheehan.
- DuPont has been touted as a potential buyer of Dow Chemical's farm unit, but some have questioned if the company is in a position to do so.
Oct. 6, 2015, 10:15 AM
- DuPont (DD +12%) bursts out of the gate to lead all Dow advancers in early trading following yesterday's news after the close that CEO Ellen Kullman would retire amid a reduced outlook for the year and an accelerated plan to cut expenses.
- The board probably pushed Kullman out because of the failure to meet predicted profit, says Suntrust analyst Jim Sheehan, adding "They clearly needed a sacrificial lamb. You wouldn’t have a CEO step aside with only a couple weeks notice without a successor in place unless it was unplanned."
- Deutsche Bank analyst David Begleiter thinks a breakup of DuPont is highly likely following Kullman's departure, noting that interim DuPont CEO Ed Breen as CEO of Tyco broke up the company twice.
- Begleiter believes a separation into an agriculture, nutrition and biosciences company and a chemical and materials company would unlock substantial shareholder value, and reiterates his Buying rating with a sum-of-the-parts analysis yielding a value of $67/share vs. yesterday's closing share price of ~$51.
Oct. 6, 2015, 9:15 AM
E I du Pont de Nemours & Company is a science and technology based company. It offers products and patents applications for agriculture, nutrition, electronics and communications, safety and protection, home and construction, transportation and others.
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