West Asian investors and American buyout firms have got together to form a consortium to prepare a US$50 bln approach for Dow Chemical Co. This could be the world's biggest leveraged buyout. 50% of the capital is reported to be from investors in Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE and Oman, and the balance from several US buyout firms.
It seems that this sale of Dow Chemical could impact a possible joint venture between Dow Chemical and Reliance Industries (RIL). The two petrochem majors are reportedly in talks for a possible US$20 bln JV in which Reliance could take 59% stake. Dow's basic chemicals and plastics businesses were expected to be spun off into a separate company in which Reliance might have agreed to pick the stake for US$12 billion.
10-Apr-07 
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