Dow Chemical Co said an arbitrator has ruled it is owed $2.48 billion by a Kuwaiti firm that scuttled a 2008 joint venture, though it is not clear when the funds will be paid. The company had expected at least $2.16 billion, and on Monday the International Court of Arbitration of the International Chamber of Commerce ruled at least $318 million in interest and other fees should be added to the amount, Dow Chemical said in a statement.
In late 2008 Dow planned a $17.4 billion joint venture with Petrochemical Industries Co (PIC) of Kuwait, spinning off its basics plastics business into a standalone company called K-Dow. PIC pulled out of the deal in December 2008, citing a deteriorating global economy. An arbitrator ruled last year that PIC was at fault and owed Dow Chemical $2.16 billion, plus interest and costs.
Dow said the decision finalises the amount in interest and fees Dow Chemical can expect, but it is unclear when the company will receive payment. PIC, a unit of the Kuwait Petroleum Corp, was not immediately available to comment. "We are resolved to take appropriate action to ensure timely payment," Dow spokeswoman Nancy Lamb said. She would not elaborate on what action Dow Chemical could take. Shares of Midland, Michigan-based Dow Chemical are down 1.7 percent so far this year, closing Friday at $31.81.
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