23 May 2012 17:26 [Source: ICIS news]
HOUSTON (ICIS)--The outcome of Dow Chemical's dispute with Kuwait-based Petrochemical Industries Corp (PIC) is imminent and could arrive in days, the chief financial officer of the US-based company said on Wednesday.
The dispute concerns the companies' failed plastics joint venture, K-Dow. Following the collapse of the deal, Dow entered arbitration proceedings.
Dow is seeking more than $2.5bn (€2.0bn) in damages, according to a regulatory filing it made in 2009.
"I hate to keep saying the same thing, but it is very imminent," Bill Weideman, Dow chief financial officer. He made his comments during the Goldman Sachs Basic Materials Conference.
"We believe we will hear something in days," Weidemen said.
However, he added that "we have no idea what the judgment will be in terms of the amount, so we will just have to wait and see".
Since at least February, Dow has said that an outcome in the case was days or weeks away.
During an earnings conference call, CEO Andrew Liveris said the decision was taking so long because of the large size of the case.
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 = €0.79)
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