DuPont Deal Caps Turbulent Reign for Dow CEO Andrew Liveris
11 Dezember 2015 - 9:05PM
Dow Jones News
By Alison Sider
Andrew Liveris, chief executive of Dow Chemical Co., will take
the role of executive chairman in a combination of Dow and DuPont
Co., announced Friday, assuming he can pull off the marriage of the
two rivals with regulators.
The move is the latest for an executive known for having big
ambitions and a personality to match. It could prove the pinnacle
of a career marked by wide swings in his company's fortunes and
personal dramas for the 61-year-old Mr. Liveris.
A deal with DuPont has been in Mr. Liveris's sights for over
years and he moved quickly when DuPont appointed a new chief
executive earlier this year.
"Persistence is my middle name," he said in an interview with
The Wall Street Journal, crediting his upbringing in Australia's
outback.
A native of the northern Australian city of Darwin, Mr. Liveris
has said he reinvented himself three or four times in his 11 years
at the helm of the chemical giant. Trained as a chemical engineer,
Mr. Liveris joined Dow nearly 40 years ago in Australia and worked
throughout Asia in Thailand and Hong Kong, and then in the U.S.
Analysts credit Mr. Liveris with forging international
partnerships that have expanded Dow's horizons, including a joint
venture with the state-owned Saudi Arabian Oil Co., or Saudi
Aramco. Together, they built a giant petrochemical complex on the
Persian Gulf that started production earlier this week.
"He's probably the most global executive I've encountered," said
Wells Fargo analyst Frank Mitsch.
He also undertook a risky overhaul of the sprawling company,
divesting billions of dollars worth of businesses--some of which
Dow had been in for more than a century--to focus on higher-margin
products.
"He's a very strategic minded person--very determined, always
willing to make bold steps for the portfolio," said Raj Gupta, the
former CEO of Rohm & Haas, which Dow bought in 2009.
Dow was rocked by the financial crisis, which took a bite out of
world-wide demand for its products. The company's $16 billion deal
to buy rival Rohm & Haas nearly collapsed due to the downturn
when Kuwait pulled out of a joint venture that would have helped
pay for the purchase. Dow had to cut its dividend for the first
time and took $3 billion worth of rescue financing from Warren
Buffett.
Mr. Gupta said Mr. Liveris stayed cool under relentless pressure
during months of legal wrangling before that deal closed. When the
dust settled, Mr. Liveris sent Mr. Gupta a gift of Australian
wine.
More recently, Dow came under fire from activist investor Daniel
Loeb of Third Point LLC, who last year pushed Mr. Liveris to break
the company apart. Dow agreed to add two of the hedge fund's
preferred directors to its board.
Mr. Liveris also has encountered legal challenges.
In a legal fight that started in 2007, Mr. Liveris ultimately
prevailed against two former executives who admitted they had
engaged in talks aimed at selling the company behind his back.
In a separate case, the U.S. Securities and Exchange Commission
has sought documents related to the Dow chief's use of company
funds, according to a person familiar with the matter. A spokesman
for the SEC declined to comment. The company didn't respond to
requests for comment, but in the past has denied any wrongdoing by
Mr. Liveris.
Scrutiny of Mr. Liveris's use of Dow money dates back to 2011,
when the company disclosed in a filing to the SEC that the CEO
repaid more than $719,000 after what the company described as a
routine audit committee investigation.
Allegations he misspent company funds on vacations and trips to
sporting events including the Super Bowl were raised in lawsuits
brought by Kimberly Wood, a former employee who said the company
had retaliated against her for raising questions about Mr.
Liveris's spending. She settled with Dow in February on terms that
haven't been disclosed.
If the DowDupont deal goes through as planned, the combined
company would then split into three separate companies. Mr. Liveris
and Edward Breen, the CEO of DuPont who will retain that title in
the new company, said Friday they haven't determined what their
roles would be when the company splits.
Jacob Bunge contributed to this article.
Write to Alison Sider at alison.sider@wsj.com
(END) Dow Jones Newswires
December 11, 2015 14:50 ET (19:50 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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