Dow share gains could allow it to retire expensive preferred shares

摘要

A rally in Dow Chemical's share price, aided by its strong second-quarter earnings report on 23 July, has the conversion of $4 billion in preferred shares that carry an expensive $340-million/year dividend in sight. Dow's shares are trading at their highest levels in nine years. The company will be able to convert the preferred shares to common shares if the stock price exceeds $53.72/share for 20 trading days in a 30-consecutive-day window. As of 29 July, Dow's shares have been above the threshold for five straight trading days.