Monday, December 22, 2008

A lump of coal for Dow's Xmas

Besides layoffs and a struggling stock price, Dow Chemical has found another turd in its Christmas eggnog.

Over in Kuwait, there's growing opposition to the government's decision to partner with Dow in a big new venture called K-Dow, whose components would include elements of Dow's Texas operation here in Freeport.

Opponents "described the deal as a sell-off and an act of squandering public funds, since the market capitalisation of Dow Chemical has dropped from 51 billion dollars last year to around 17 billion dollars currently," reports AFP.

"The deal has been mired with an exaggeration in its value and with highly-inflated commitments, for the benefit of the other (Dow) party," the statement said.
Since the deal was unveiled earlier this month, it has come under fire from many MPs, who accuse the government of failing to protect national interests.
Under pressure, the government said last week it has referred the deal to the independent Audit Bureau for revision and also to its legal department to assess contractual obligations."

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