NewsFlashDow, former executives settle suits

02 June 2008 17:21  [Source: ICIS news]

HOUSTON (ICIS news)--US chemical major Dow Chemical reached a settlement with former executives Pedro Reinhard and Romeo Kreinberg, the company said on Monday.

The two parties sued each other in federal court.

Reinhard and Kreinberg said that Dow unfairly fired them. Dow accused the former executives of holding unauthorised talks to sell the company.

Under the settlement agreement, Reinhard and Kreinberg acknowledged that they participated in unauthorised, undisclosed talks concerning a potential leveraged buyout (LBO) of Dow, the company said in a statement.

The former executives also agreed that they should have told Dow CEO Andrew Liveris and the company's board about the LBO discussions.

The two also acknowledged that Dow's board took appropriate actions under the circumstances. The two do not dispute a news release that Dow issued on 12 April 2007.

In that release from a year ago, Dow said it fired the executives because they held unauthorised talks about the potential acquisition of the company.

In return, Dow's board acknowledged that Reinhard and Kreinberg made substantial contributions to the company "over their lengthy and illustrious careers at Dow".

Other terms of the agreement are confidential

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By: Al Greenwood
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