Steve Miller: Dow Chemical Board Moves Prevent Loeb Fight

Dow Chemical reached an agreement with Dan Loeb's Third Point to add four new directors to its board, increasing the number from 10 to 13. Steve Miller, the current non-executive chairman of AIG, is among the new directors. The agreement aims to avoid a costly proxy battle and bring fresh ideas to improve the company's return on assets. The standstill agreement ensures no hostile proxy fight will occur in the spring, with the addition of new directors seen as a solution to enhance Dow's performance.

What was the main outcome of the agreement between Dow Chemical and Third Point?

• Dow Chemical reduced its board size.

• Third Point added four new directors to Dow's board.

• Third Point sold its shares in Dow Chemical.

• Dow Chemical acquired Third Point.

Why did both sides prefer a consensual settlement over a proxy battle?

• It was less expensive and less distracting.

• It avoided legal complications.

• It allowed for a complete takeover.

• It was a faster process.

What was Third Point's main objective in the agreement with Dow Chemical?

• To cut down on operational costs.

• To merge with another company.

• To introduce new ideas for improving asset returns.

• To increase the company's market share.

What is Steve Miller's first priority as a new director on Dow's board?

• To become familiar with the company's assets.

• To launch a new product line.

• To restructure the company.

• To negotiate new partnerships.

What does the standstill agreement prevent Dan Loeb from doing?

• Selling his shares in Dow Chemical.

• Investing in other chemical companies.

• Launching a hostile proxy fight.

• Joining the board of directors.