Tuesday, April 17, 2007

(Can’t) Vote for Pedro

By ROB WESTERVELT (Editor, Chemical Week)
Dow Chemical's board has authorized a revised slate of board nominees for election at its annual meeting next month, dropping the nomination of former CFO Pedro Reinhard. Dow last week charged that Reinhard and Romeo Kreinberg, executive v.p./performance plastics and chemicals, “were involved in unauthorized discussions with third parties about the potential acquisition of the company.” Both were fired April 12. Dow says it board has also reduced the size of its board by one, to 11 directors, eliminating Reinhard’s seat on the board. The action takes effect at the company’s annual meeting, is scheduled for May 10 in Midland, MI. “The board acted on the recommendation of the governance committee of the board of directors,” Dow says. Dow’s annual meeting Dow’s shareholder proxy materials have already been prepared and include Reinhard as a candidate, but votes for Reinhard will not be counted, according to Dow. “[Proxies] will be voted for the directors nominated by the board of directors as instructed on the proxy, except that votes will not be cast for Mr. Reinhard in light of his no longer being a nominee of the board of directors,” Dow says. Reinhard remains on the Dow board through the annual meeting unless he resigns.

Reinhard, meanwhile, refuted Dow’s charges in a written statement yesterday:
"I categorically deny that I have been part of any secret effort to take over or acquire Dow Chemical," J. Pedro Reinhard said in a written statement Monday. "It is regrettable that the company has rushed to publicly condemn me in the face of my complete denial of wrongdoing."

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