A break-up of Dow Chemical would raise costs, its chief executive has said, as he rejected calls from Third Point, the hedge fund, for the group to split off its petrochemicals business.

Andrew Liveris said the company was "open to all good ideas", and had already made or announced significant disposals, but said the board had considered and decided against the more radical moves proposed by Third Point.

“We have looked at separation, including the ideas that are on the table, and we believe we are on the right path with what we have announced,” he said

He was speaking as Dow reported earnings well above analysts’ expectations and announced a steep dividend increase and share buyback programme. – (Copyright The Financial Times Limited 2014)