Dow Chemical fires two over buyout dispute

Only days after announcing that it’s not in talks involving a leveraged buyout, Dow Chemical Co. has shown the door to a senior advisor and an executive, accusing them of trying to negotiate a deal behind the company’s back.

Senior advisor J. Pedro Reinhard, who retired as the chemical giant’s chief financial officer in October 2005, and Romeo Kreinberg, a divisional executive vice president, were dismissed with the approval of the board, Chairman and Chief Executive Andrew Liveris said Thursday.

Reinhard remains a member of the board because only shareholders, not management, can remove directors.

“The values of integrity and respect for people are at the very core of our company,” Liveris said in a written statement.

The statement said Reinhard and Kreinberg had “engaged in business activity that was highly inappropriate and a clear violation of Dow’s Code of Business Conduct.”

Chris Huntley, a spokesman for Midland, Mich.-based Dow Chemical, said the two men were “involved in discussions with other parties about acquiring the company. This wasn’t them talking on behalf of the company. We had no knowledge that these discussions were going on.”

Kreinberg said that there was no truth to the accusations against him and that he had sought the advice of legal counsel.

“The behavior of the company is very unusual, and the accusations have absolutely no substance and are highly damaging to my reputation after 30 years of employment,” he said.

Reinhard could not be reached for comment.

Dow Chemical’s shares rose 91 cents to $46.