Corrected: BASF sets deadline for Engelhard bid

Correction: In the ICIS news story headlined “BASF sets Engelhard deadline, will drop takeover bid” dated 1 May, 2006, please read in the second paragraph …five officials to the board… instead of … two officials to the board... . A corrected story follows.

LONDON (ICIS news)--German chemicals giant BASF said on Monday that it would let its increased cash offer of $38 (Euro30)/share for Engelhard lapse next month if the US-based catalyst maker once more rejected the sweetened  overture.

The deadline for the company’s protracted hostile takeover of Engelhard and its nomination of five officials to the board will now expire on 5 June.

“If Engelhard’s shareholders don’t vote in favour of our nominees, we will allow our tender offer to expire on 5 June and turn our attention to other opportunities,” BASF chairman Jürgen Hambrecht said in a statement.

Engelhard had last week, in its latest effort to thwart the BASF takeover, announced a 20% share buy-back at $45/share.

Analysts said that BASF would need to up its offer to $41 in order to win shareholder acceptance.

 “BASF believes that its offer for all of Engelhard’s shares provides greater value and more certainty to Engelhard’s shareholders than what may be achievable through the Engelhard leveraged recapitalisation and 20% share buyback. Our offer allows Engelhard’s shareholders to maximise value today and without risk, instead of waiting and hoping for a highly leveraged Engelhard to deliver on its promises,” Hambrecht said.

Engelhard shares ended trading flat on Friday at $38.41.