Kuwait lawmakers to probe govt over K-Dow deal - reports

13 January 2009 19:42  [Source: ICIS news]

TORONTO (ICIS news)--Kuwaiti lawmakers plan to investigate the country’s government over its handling of the K-Dow Petrochemicals joint venture deal with Dow Chemical, which was cancelled late December, media reports said on Tuesday.

Twelve deputies of Kuwait’s 50-member legislative assembly proposed to set up an investigative panel that would question the prime minister and his cabinet, the reports said.

They quoted foreign minister sheikh Mohammad al-Sabah as saying that the government would cooperate with the investigation.

Media officials at Dow Chemical were not immediately available for comment.

Dow Chemical said last week it planned to take legal action following Kuwait’s withdrawal on 29 December from the K-Dow venture, for which the country’s Petrochemical Industries Co (PIC) was to pay Dow $7.5bn (€5.6bn).

The K-Dow joint venture was pivotal to Dow’s strategy to lighten its asset base and create a more market-facing chemical company with its planned $18.5bn acquisition of US specialties producer Rohm and Haas.

Meanwhile, Dow failed to meet a Saturday deadline to close that deal and was due to start daily penalty payments to Rohm and Haas.

($1 = €0.75)

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By: Stefan Baumgarten
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