Dow CEO Weighs Options For AgroSciences Unit
In its first quarter earnings investment webcast held today, Dow Chemical’s CEO Andrew Liveris discussed the options the company is considering in paying down the debt it had accumulate via the acquisition of Rohm & Haas and the poor performance of several of its divisions that have been affected by the worldwide recession.
One of the options he discussed was changes in its ownership of its Dow AgroSciences’ unit which was the company’s top performing units in the first quarter.
Although the unit is still strategic to the overall company, he says its value has grown substantially and he would be interested in capturing that value on behalf of Dow and its shareholders.
He said the options that are being considered include full divestiture, joint venture, and an IPO.
Liveris said the company is in very serious discussions with several parties about the above. A slide in his presentation placed a value of $15 billion on the unit. He said the unit will not be in its present form by the end of the year. Rather, he expects to have final negotiations announced within "30, 60, or 90 days."
To listen and view his comments, click here.
Source: AgriMarketing magazine