Dow fires 2 executives for illegal merger talks

Dow Chemical Co, the largest US chemical maker, fired two executives it said held unauthorised discussions to sell the company.

Board member Pedro Reinhard, 61, who was the former chief financial officer, and Romeo Kreinberg, executive vice-president of performance businesses, "were engaged in business activity that was highly inappropriate,'' Midland, Michigan-based Dow said today in a statement.

The "misconduct was first disclosed'' on April 10, and the executives ``were terminated this morning with full support of the board,'' the company said.

Dow's shares jumped 4.9 percent on April 9 after Britain's Sunday Express reported US buyout firms and Middle Eastern investors were preparing a takeover bid of at least $50 billion. The stock surged 5.6 percent on March 15 on speculation Dow would merge assets with India's Reliance Industries.

Dow rose $1.21, or 2.7 percent, to $46.30 at 9:34 a.m. in New York Stock Exchange composite trading. They have gained 17 per cent in the past year.