Shortly after news of the merger of Dow and DuPont was announced during breakfast time, on Friday, a photo was sent of grinning CEOs Ed Breen, left of DuPont and Andrew Liveris of Dow.It was part of a PR offensive we will see in coming months as the two companies tout a plan to combine and split off into three companies. It’s also part of an effort to appease activist investors like Nelson Peltz who pushed for a split-up of businesses.
And it’s in keeping with the fad of the moment – spinning off narrowly focused enterprises that provide value (a quick buck) for investors.
The downside is that a one-trick-pony business can end up in the toilet when markets go south.
Right now, a combined Dow and DuPont agricultural business would be in the trouble and perhaps in some financial difficulty. Former DuPont CEO Ellen Kullman made that argument in resisting the demands of Peltz to divvy up its businesses.
Also, the spun-off companies would be small enough to be acquired by competitors in Germany or elsewhere who are not following the fad of the moment.
But back to the smiles. A few of our Facebook fans took offense at the facial expressions at a time when 10 percent of DuPont’s workforce will be slashed.
They have a point.
