Cemex likely to resume legal battle

Cemex likely to resume legal battle
Published: 28 February 2005

With the deadline fast approaching, and no out-of-court deal made, the government is gearing up for a legal battle at the international arbitration court to settle its years of dispute with Mexican cement giant Cemex SA. Coordinating Minister for the Economy Aburizal Bakrie said on Friday the two opposing sides were unlikely to reach a settlement by the Feb. 28 deadline, prompting both parties to continue with the legal proceedings. Still, Aburizal refused to completely rule out the possibility of striking an out-of-court deal, even when the deadline had passed. "After Feb. 28, we will launch a parallel effort to continue the court battle, while at the same time seeking a better option for the out-of-court settlement," said Aburizal after attending the opening of the Capital Market Exhibition. Aburizal refused to disclose the options, but according to sources at the Office of the State Minister of State Enterprises, the options will include the sale of Semen Gresik plants in Tuban, East Java, to Cemex, the proceeds of which would probably be used to build new cement plants (abstracted report Jakarta Post).