Third Point takes $1.3 billion stake in Dow Chemical, calls for spinoff

Third Point Management, the hedge fund run by activist investor Dan Loeb, announced on Tuesday it had taken a $1.3 billion stake in Dow Chemical, urging the company to consider severing its petrochemcial business.

With the purchase, Third Point now becomes one of Dow's top ten shareholders, with the company being the fund's largest single position.

Third Point called on Dow to consider spinning off its petrochemical operations into a standalone firm, adding that the move would create additional value for the company.

--reporting by CNBC's David Faber; writing by Javier E. David