Tuesday 10 February 2009

Kuwaitis seek change in terms of Dow Chemical's move for Rohm

The Kuwait Investment Authority would consider increasing its support for Dow Chemical's disputed takeover of Rohm and Haas if the terms of the deal were changed to account for the downturn, a person familiar with the matter says.

Dow failed to complete the $15bn (€11.5bn) deal after the collapse of a joint venture between Dow and PIC - an arm of the Kuwaiti Petroleum Corporation - that was supposed to contribute $7.5bn to help pay for the acquisition. Warren Buffett has agreed to contribute $3bn and the KIA was to have added $1bn. According to a person with direct knowledge of the matter, the KIA would consider putting up more money, if there were new terms.

"Today, it is very difficult to complete this deal on the old terms," this person added. "There would have to be a new price and new terms. The environment has changed so much and chemical companies are losing so much money."

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