Dow Chemical to Pursue Legal Action Against Kuwait

Dow Chemical said Tuesday that it would pursue legal and other options to fulfill rights under its agreement with Petrochemical Industries of Kuwait.

Last month, Kuwait decided to scrap a deal to form a $17.4 billion petrochemical joint venture with Dow, potentially upsetting the largest U.S. chemical company's plans to buy rival Rohm & Haas.

Dow had planned to use proceeds from the joint venture with Kuwait's state-run Petrochemical Industries to repay a large part of the debt financing for the $15.3 billion Rohm & Haas acquisition.

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Dow said other parties had expressed interest about becoming involved in the basic plastics joint venture it was to form with the Kuwaiti company.

In an interview with Reuters, Dow Chief Executive Andrew Liveris confirmed that two companies have already approached Dow and expressed interest in partnering with them on the basic plastics business.

Liveris declined to comment on whether Dow would consider renegotiating the Rohm and Haas deal value, or whether Dow would consider pulling out of that deal entirely.

"Rohm and Haas is on strategy and is in the regulatory approval process," said Liveris.

The combination of planned actions on cash flow as well as operating earnings will allow Dow to continue to pay a regular, quarterly cash dividend, the company said in a statement.

Dow Chemical shares rose in the morning after the chemical maker said it would pursue legal options against its Kuwaiti partners.

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