By: EUROPEAN PLASTICS NEWS
March 12, 2013
GENEVA, SWITZERLAND — Swiss investment firm Klesch & Co. Ltd. is suing Arkema SA for misrepresentations relating to the sale of the French company's vinyls division.
In a statement Klesch said it has discovered "significant gaps" between the information presented by Colombes, France-based Arkema before the acquisition of the unit, later remained Kem One SAS, was completed and the current financial results.
"Had Klesch known of these misrepresentations at the time of negotiations, it would not have entered into the transaction under the terms agreed," the company said in a statement.
Geneva-based Klesch says it wants Arkema to compensate Lyon, France-based Kem One for financial shortfalls in the balance sheet and income statement. The firm had no option but to seek formal arbitration, after "months of negotiation," it adds.
Arkema did not respond when contacted by European Plastics News.