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Reliance may raise Lyondell offer: report

Reliance may raise Lyondell offer: report
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First Published: Fri, Feb 19 2010. 10 50 AM IST
Updated: Fri, Feb 19 2010. 10 50 AM IST
Mumbai: Energy major Reliance Industries may raise its offer for LyondellBasell that will include cash and stock options for shareholders and creditors, the economictimes.com website reported on Friday.
Reliance, India’s largest-listed firm, had offered a deal that would value the bankrupt petrochemicals maker at about $13.5 billion, but earlier this week the target firm settled a dispute with creditors, paving the way for an exit from bankruptcy.
Reliance Industries could not be immediately reached for comment.
The enterprise value of LyondellBasell is now pegged at a minimum of $14.5 billion and Reliance is trying to tweak its bid, the website reported, quoting several unnamed sources close to the development.
“The valuation would have to be higher but RIL’s offer would highlight the synergies in business and cross savings as a selling point to the creditors,” one of the sources told the website.
Apart from a higher financial bid, Reliance is also looking at other options, including one offering stock and cash option, the source said, adding that the Indian company would be ready with a changed plan by end February.
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First Published: Fri, Feb 19 2010. 10 50 AM IST