02 February 2012 18:34 [Source: ICIS news]
HOUSTON (ICIS)--A decision over Dow Chemical's dispute with Kuwait-based Petrochemical Industries Corp (PIC) is taking so long to arrive because of the large size of the case, the CEO of the US-based company said on Thursday.
The dispute concerns the two companies' failed plastics joint venture, K-Dow. Following the collapse of the deal, Dow entered arbitration proceedings.
Dow is seeking more than $2.5bn (€1.9bn) in damages, according to a regulatory filing it made in 2009.
When asked why a decision has been so long in coming, Liveris said it was "the enormity of the case from a legal point of view".
"We don't control the time, but it's days and weeks, not months," he said without elaborating.
To form the joint venture, PIC would have paid $9.5bn for a 50% share in five of Dow's global businesses worth approximately $19bn.
Dow intended to use the proceeds from the K-Dow deal to help fund its $18.8bn acquisition of Rohm and Haas.
PIC then allegedly broke its joint-venture agreement to buy 50% of Dow's plastics business, according to a regulatory filing. Private negotiations failed to salvage the deal.
Following the collapse of the K-Dow deal, Dow missed a deadline to close on the Rohm and Haas acquisition, which later resulted in a lawsuit.
Ultimately, Dow resolved the lawsuit with Rohm and Haas, and the merger closed on 1 April 2009.
($1 = €0.76)
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