Glenview Capital Management responds to DowDuPont spin-off plans
Glenview Capital Management issued the following statement regarding the announcement by DowDuPont: "We applaud today's announcement and the strong process that led to these significant improvements in the intended composition and sequencing of the DowDuPont spinoffs. We thank the leadership of each company for utilizing an unbiased third party in McKinsey & Company and for listening to the broad-based feedback from owners. Delivering these enhancements to the spinoff process within days of the creation of DowDuPont is an important first step in establishing premier governance principles befitting the history of these two franchises. As a next step, we look forward to the board's study of capital structure and capital allocation policy. Since management will likely be fully engrossed in achieving operational synergies and internally reorganizing under the new tri-company structure, it is unlikely that the strong free cash flow of the combined entity would be used to support material acquisitions in the intermediate term. As we believe DowDuPont remains significantly undervalued relative to the sum of its parts, we recommend the board adopt a meaningful share repurchase program promptly to reduce the overall cost of capital and to drive long-term shareholder value."