Kuwait ready for Dow's legal action
January 8, 2009
KUWAIT CITY, Kuwait — Kuwait says it is ready to counter any efforts by Dow Chemical to receive a $2.5 billion break up fee over a multi-billion dollar deal that recently fell through, according to Reuters.
The $17.4 billion K-Dow joint venture deal was canceled last month after much Kuwaiti parliamentary opposition, the story stated.
Commerce and Industry Minister Ahmad Baqer said: "The state of Kuwait has undertaken all necessary measures to counter the case Dow Chemical is pursuing against KPC for not concluding a deal by Petrochemicals Industries Co. with Dow."
According to the agreement, and in order for Dow to qualify for the $2.5 billion break up fee, they would need a court ruling that proves Kuwait violated their deal, the story noted.
The volatile and uncertain economy is being blamed for Kuwait''s decision to back out of the deal, the story added.
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