"Dow Chemical, DuPont Are in Late-Stage Merger Talks"

"Dow Chemical Co. and DuPont Co., two historic giants of American industry, are considering a merger that would ultimately dismantle both along lines proposed by activist investors over the past two years.

With more than 300 years of combined history, the chemical companies are in talks to combine in a deal that may be valued at about $120 billion. That would be the industry’s largest merger ever and the latest mega-deal in a year of mega-deals.

The talks follow a tumultuous period for both companies. DuPont’s former Chief Executive Officer Ellen Kullman stepped down in October, about five months after winning a proxy battle waged by activist investor Trian Fund Management. Dow CEO Andrew Liveris, who led the company’s recovery from near-insolvency during the financial crisis, has also faced pressure from an activist shareholder -- Dan Loeb’s Third Point."

Jeffrey McCracken and Jack Kaskey report for Bloomberg December 8, 2015.