Sunday, May 27, 2012
(This story was originally published Thursday)
DOW JONES NEWSWIRES
Dow Chemical Co. (DOW) said it was awarded $2.16 billion for damages after Kuwait's Petrochemical Industries Co. dumped the chemical giant from a multibillion-dollar joint venture in 2008.
Dow said the arbitration award from the International Chamber of Commerce holds that the Kuwaiti-owned chemical company was liable and the awarded damages don't include interest and costs.
Efforts to reach PIC were unsuccessful.
Dow Chemical launched legal action in January 2009 against Kuwait following the country's decision to pull out of a $17.4 billion deal with PIC, known as K-Dow.
Under the failed deal, PIC was to pay Dow $7.5 billion for a 50% stake in several basic-chemicals plants. But Kuwait's top petroleum-policy council decided to pull the plug less than a week before PIC was due to pay Dow.
The canceled venture would have provided Dow with $9 billion towards its acquisition of Rohm & Haas Co., which still closed later in 2009.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com
(END) Dow Jones Newswires
27-05-12 0419GMT
