Dow Chemical Co.'s board reaffirmed its support for the company's $1.3 billion merger with DuPont Co. on Monday after a news report said activist investor Daniel Loeb wants Dow's CEO to be removed.
The Wall Street Journal said Loeb, who heads Third Point LLC, wrote a private letter to Dow's board over the weekend that questioned the timing of the merger and pushed for Dow CEO Andrew Liveris to be removed. Loeb's firm has a 2 percent stake in Dow, according to FactSet.
A Third Point spokeswoman said the Wall Street Journal report was correct but declined further comment.
Dow's board, including two members selected by Third Point, said in a written statement Monday that they fully support the deal. A Dow representative did not immediately respond to a request for comment.
Dow and DuPont announced a merger Friday that would form a $130 billion company called DowDuPont. After the merger, Liveris would be named executive chairman of DowDuPont and DuPont's Edward Breen will be CEO. As part of the deal, DowDuPont will eventually be split into three separate companies.
Dow is the parent company of Indianapolis-based Dow AgroSciences LLC, which has about 1,500 local employees. What will happen to the unit after the merger remains unclear.
Shares of Midland, Michigan-based Dow fell $2.37, or 4.4 percent, to $51.00, in morning trading Monday. Shares in Wilmington, Delaware-based DuPont fell $2.94, or 4.1 percent, to $67.50.