Failed Kuwait Deal Has Dow Considering Legal Action

Law360, New York (January 6, 2009, 12:00 AM EST) -- Dow Chemical Co. said Tuesday that it would pursue “legal options” against Kuwait after the country's petroleum authority reversed approval last week of a $17 billion joint chemical-manufacturing venture between Dow and a state-owned Kuwaiti company.

In early December, Dow signed an agreement with state-owned Petrochemical Industries Co., a subsidiary of Kuwait Petroleum Corp., to form the joint venture. To be called K-Dow Petrochemicals, it would manufacture polyethylene and other chemicals and plastics.

Less than a month later, on Dec. 28, PIC informed Dow that Kuwait's...
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