Platinum Equity to cancel 500M dollars contract with PPG

Platinum Equity, a private equity firm ,plans to cancel $500 million agreement with PPG Industries Inc. Acording the deal, Platimun was to buy two of the company's automotive glass businesses.

PGG said that California’s private equity firm planed to terminate the contract after Dec. 31., but the reasons were not disclosed.

Platinum’s affiliates have filed a lawsuit in the Supreme Court of the State of New York, alleging that the firm is not obligated to complete the acquisition.

PGG said that if the deal is canceled, the company will explore other strategic alternatives for the businesses.

PPG is an American manufacturer of glass and chemical products, including automotive safety glass. PPG is also the world's third largest producer of chlorine and caustic soda (used in a wide variety of industrial applications), vinyl chloride (for use in polyvinyl chloride resins), and chlorinated solvents.

It is headquartered in PPG Place, a popular office and retail complex known for its striking glass facade designed by Philip Johnson. It is located in downtown Pittsburgh . PPG has 125 manufacturing facilities and equity affiliates in more than 20 countries around the globe.

PPG recently made an offer to Bain Capital to buy the SigmaKalon Group of companies, which produce paints and speciality coatings. This offer was accepted, with the transaction to be completed in the 4th quarter of 2007.

Platinum Equity is an American information technology and private equity firm. It was founded by billionaire Tom Gores in 1995 and is headquartered in Beverly Hills, California. Forbes magazine ranked it number 22 on its 2006 list of the largest private companies in the United States.