Midland, Michigan US - Ex Dow Chemical Co. executives Pedro Reinhard and Romeo Kreinberg have settled their dispute with their former employer. Reinhard, Kreinberg and Dow announced in a 2 June statement that, "The litigation between them has been settled to the mutual satisfaction of the parties."
Reinhard, former Dow director and Kreinberg, former executive vice-president for the performance plastics and chemicals portfolio had originally been dismissed 12 April 2008 for holding secret talks for a leveraged buy-out (LBO) of the company without the boards knowledge. This led to Reinhard and Kreinberg suing Dow for defamation following a Dow press release explaining their dismissals,. The executives claimed the statements in this were untrue.
Terms of the settlement published in the Dow statement are as follows:
- Reinhard and Kreinberg acknowledge participating in discussions. which were not authorised by nor disclosed to Dow's board, concerning a potential LBO of Dow.
- Reinhard and Kreinberg acknowledge that the actions taken by Dow's board were appropriate under the circumstances.
- Reinhard and Kreinberg agree it would have been appropriate to have informed the ceo and the board of the LBO discussions.
- The board acknowledges Reinhard and Kreinberg's substantial contributions to Dow over their lengthy and illustrious careers at Dow.
Other terms of the settlement are confidential.