Dow Chemical Shares Jump on Deal Rumors
Dow Chemical shares jumped almost 5 percent as some analysts and investors speculated that a delayed investor meeting is linked to an announcement that may involve a major acquisition by the company or the spin-off of a business.
The largest U.S. chemicals maker said on Friday that it postponed a meeting with institutional investors that was scheduled for early next month.
"Shares are being pushed basically by the cancellation of their investor day and investors speculating that some sort of transaction is imminent," said HSBC analyst Hassan Ahmed.
Dow is in the midst of changing its strategy to focus on its high-margin specialty chemicals business, while expanding its commodity chemical business through a series of joint ventures.
"As we move ahead with our transformational strategy, making solid progress on several fronts, we continue to explore a number of exciting opportunities," said the company in a note to institutional investors.
The meeting, which was to be held on November 6 and 7 in New York, will now be held sometime early next year, said Dow spokesperson Chris Huntley.