As managing editor of Dow Chemical Co. announced this morning that it has terminated two top officials: Pedro Reinhard, a senior advisor and member of the board of directors, and Romeo Kreinberg, one of the company's top plastics executives. A news release from the company accused the pair of engaging in "business activity that was highly inappropriate and a clear violation of Dow’s Code of Business Conduct. Reinhard and Kreinberg were involved in unauthorized discussions with third parties about the potential acquisition of the Company.
"The Company took swift action: information about the misconduct was first disclosed to Dow on Tuesday, April 10; the Board of Directors was informed on Wednesday, April 11; and the employees were terminated this morning with full support of the Board.
“The values of integrity and respect for people are at the very core of our Company,” said Andrew Liveris, chairman and CEO. “I think I speak for all employees when I say we are greatly saddened by the disrespect shown by our former colleagues. But we will move on to shape our future with an even greater resolve to execute our strategy and deliver value to our shareholders. We will uphold Dow’s 110-year history of commitment to the highest standards of integrity, ethical conduct and corporate governance.”
It will be interesting to see if this news is linked to all of the rumors about Dow being acquired that have circulated in the business press for several weeks.
Earlier this week, Dow announced that it is forming a styrenics joint venture with Chevron Phillips Chemical Co. LP.