Ties Between Dow Chemical and Imperial Chemical May Lead to Rival Bid

Dow Chemical may have its sights set on acquiring Imperial Chemical Industries, despite the bid already made by Akzo Nobel (See article at DealBook). We constructed an IntellectSpace Knowledge Map of Dow and ICI to determine whether or not their common connections may create an advantage over Akzo. Based on the ties that were displayed, Dow may be able to entice ICI into accepting a rival offer.

If Dow is to try and pull some strings to make this deal happen, the company is likely to leverage the relationships of Andrew N. Liveris (CEO and Chairman) and Barbara H. Franklin (Director since 1983) to Joseph T. Gorman, one of ICI’s current directors. The three are connected through the US-China Business Council, where Liveris presently is Vice-Chair and Franklin and Gorman were recently Vice-Chair and a director, respectively. Liveris and Franklin may still be in touch with Gorman, allowing the three to converse about the possibility of an arrangement between Dow and ICI.

Another relationship that could influence a deal is that shared between two former CEO’s of each company. William S. Stavropoulos was head of Dow until 2006, Brendan R. O’Neill led ICI until 2003, and both know each other through TYCO, where each currently serves as a director. With O’Neill and Stavropoulos having served as chief executives of Dow and ICI, this relationship opens up another avenue for strategic communication between the companies. 

Click here for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=e15df09b-e8a2-420e-9b61-32f328785cff