Dow Chemical (Midland, Michigan / USA; www.dow.com) dismissed an executive vice president and a senior adviser on 12 April 2007, accusing Romeo Kreinberg and Pedro Reinhard of engaging in business activity that was "highly inappropriate and a clear violation of Dow´s Code of Business Conduct." It said the two men were involved in "unauthorised discussions with third parts about the potential acquisition of the company."

The dismissals came amid rumours – up to now emphatically denied by Dow – that US private equity and Middle East interests were seeking to implement a leveraged buyout of the entire company – see Plasteurope.com Web of 12.04.2007. In a statement, Dow CEO Andrew Liveris said the company had "received information" about the alleged misconduct of Kreinberg and Reinhard on 10 April and terminated their contracts a day later, with the "full support" of the board of directors.

Kreinberg, who was vice president for performance plastics and chemicals, told the news agency Bloomberg that the allegations were "unsubstantiated and unfounded" and that the pair were being "used to lend credence to takeover rumours" that had led Dow´s share price to rise. According to filings with the US Securities & Exchange Commission (SEC), both Kreinberg and Reinhard had substantial shareholdings in the company.

For many years, Kreinberg was influential in shaping Dow´s plastics business. Most recently, he was a member of Liveris´ five-member Executive Leadership Committee, charged, among other things, with defining the company´s strategic direction. Reinhard, who had retired from full-time service, was a long-time chief financial officer at the US chemical giant and up to 12 April served as a senior adviser as well as a member of the board of directors. US press reports said he could not be formally dismissed from the board prior to a shareholder vote, scheduled for mid-May.