Dow fires two executives over acquisition talk

[M.D. Holloway]

From Chemical Processing News...

'Only days after announcing that it's not in talks involving a leveraged buyout, Dow Chemical Co. has shown the door to a senior adviser and a company officer, accusing them of trying to negotiate a deal behind the company's back, according to the Associated Press. Senior adviser Pedro Reinhard, who retired as the chemical giant's chief financial officer in October 2005, and Romeo Kreinberg, a divisional executive vice president, were dismissed with the approval of the board of directors, Andrew Liveris, Dow Chemical chairman and CEO said in a statement. The statement said Reinhard and Kreinberg had "engaged in business activity that was highly inappropriate and a clear violation of Dow's Code of Business Conduct. Kreinberg has said there is no truth to the accusations made against him and he is seeking legal counsel.'


Loose lips...

[legion]

Are you implying that these guys were fired for leaking news of an official deal rather than trying to facilitate a backdoor deal?

[Rick Lee]

Legion, the WSJ had a big piece on it last week and these guys were trying to negotiate a deal with some priviate equity guys, I think, in Oman. They were totally acting outside their authority and I'd be surprised if they weren't sued or prosecuted as well.