A major hedge fund is making waves for Midland-based Dow Chemical.
Third Point Management announced today that it has upped its position in Dow Chemical.
The hedge fund now has a $1.3 billion stake in Dow. That makes the hedge fund a significant shareholder in the company.
The hedge fund says it wants Dow to undergo a “strategic review” of its business. Specifically, the hedge fund says Dow should spin off its petrochemicals business and focus on being a “specialty” chemical company.
Billionaire Dan Loeb manages Third Point. He’s well known for being an activist investor, using his hedge fund to pressure companies to make changes he expects will make them more profitable for investors and more efficient.
A Dow Chemical spokeswoman says the company welcomes “constructive input”.
Dow shares rose sharply after Third Point made its announcement this morning.