Kuwait government to counter Dow claims - report

08 January 2009 17:00  [Source: ICIS news]

TORONTO (ICIS news)--Kuwait will counter any claims Dow Chemical plans to bring against it for pulling out of the K-Dow joint venture, the country’s Al-Watan newspaper reported on Thursday, citing industry minister Ahmed Baqer.

Bager was quoted as saying that the Kuwait government would meticulously follow procedures outlined in the K-Dow agreement to prevent Dow from claiming any financial damages under a $2.50bn (€1.85bn) penalty clause.

The paper also quoted other unnamed government sources as saying that Kuwait would initiate negotiations with Dow that could last for weeks.

A spokesman for Dow Chemical was not immediately available for comment.

Dow said this week it planned to take legal action to protect the interests of the company and its shareholders following the collapse of its K-Dow venture with Kuwait’s Petrochemical Industries Company (PIC).

K-Dow was pivotal to Dow’s strategy to lighten its asset base and create a more market-facing chemical company with the help of a yet-to-be-completed $18.5bn takeover of US specialities major Rohm and Haas.

Analysts said earlier that Dow was not likely to find a new joint venture partner that would match the $7.5bn price PIC had offered for Dow’s commodity chemical assets under the K-Dow deal.

($1 = €0.74)

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By: Stefan Baumgarten
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