20 January 2010 12:04 [Source: ICIS news]
MUMBAI (ICIS news)--Reliance Industries will have to re-evaluate its strategy for acquiring LyondellBasell following a recent ruling by a US bankruptcy court, a source familiar with the developments said on Wednesday.
“The unsecured creditors’ bid [to include the Reliance offer] has been rejected. That route is closed. And the exclusivity period [for the management plan] is until 15 April. So Reliance will have to rework its strategy,” said the source.
The court on 19 January granted Lyondell Chemical, the ?xml:namespace>
The court also rejected a request by unsecured creditors to expand the scope of an examiner to review how Lyondell was evaluating Reliance’s bid.
“Reliance can still make a binding bid to the LyondellBasell management and then they can take it to court; it can also increase its offer. Reliance will have to evaluate [options],” the source said.
Reliance declined to comment for this story.
Reliance first made a preliminary, non-binding offer for LyondellBasell in November 2009.
Earlier this month, Reliance was reported to have raised its offer by $1.5bn (€1.05bn) to $13.5bn.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|