KUWAIT Jan 8 Kuwait is ready to counter any
legal action by Dow Chemical (DOW.N) to avoid paying a break fee
of up to $2.5 billion over a scrapped $17.4 billion deal, a
government minister was quoted saying on Thursday.
Last month, the OPEC country cancelled a petrochemicals
joint venture with the largest U.S. chemicals firm after
parliament voiced opposition, just weeks after signing the deal.
Dow said on Tuesday it would take legal action against
Petrochemical Industries Co (PCI) which was due to contribute
$7.5 billion for its stake in the project.
PCI is a unit of Kuwait Petroleum Corp (KPC), the top state
oil firm in the world's seventh-largest oil exporter.
"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,"
al-Watan quoted Commerce & Industry Minister Ahmad Baqer as
Baqer did not elaborate.
Several Kuwaiti officials have told Reuters that under the
agreement Dow would need a court ruling proving that Kuwait had
violated the deal to qualify for a break fee.
The deal was key for Dow to help fund its takeover of U.S.
rival Rohm & Haas ROH.N.
(Reporting by Ulf Laessing; Editing by Thomas Atkins and David