Dow in talks with PIC to revive K-Dow deal – report

12 March 2009 03:18  [Source: ICIS news]

Dow headquartersSINGAPORE (ICIS news)--US major Dow Chemical is in talks with Kuwait’s Petrochemicals Industries Co (PIC) to revive the failed K-Dow joint venture, a news report said on Thursday.

“We are definitely in discussions,” Bloomberg reported CEO Andrew Liveris as saying.

Dow started arbitration proceedings against the company on 21 February on grounds that PIC broke its joint-venture agreement and was last heard to be seeking some $2.5bn in damages.

The Kuwait Supreme Petroleum Council’s (SPC) reversed a prior approval of the joint venture on 29 December 2008 and left Dow Chemicals deprived of the $9bn it was expecting from the conclusion of the deal.

Dow subsequently had difficulties in closing its $18.8bn merger deal with Rohm and Haas but agreed this week to close the acquisition by 1 April, at its initial offer price for the company at $78/share.

($1 = €0.78)

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By: Bohan Loh
+65 6780 4359

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