LyondellBasell settlement not a setback for Reliance - source

17 February 2010 15:31  [Source: ICIS news]

MUMBAI (ICIS news)--LyondellBasell’s recent $450m (€328.5m) settlement with unsecured creditors is not a setback for Reliance Industries, which is looking to acquire the company, a source close to the developments said on Wednesday.

LyondellBasell announced on 16 February that it had reached a preliminary agreement with unsecured creditors, which would help it emerge from US Chapter 11 bankruptcy protection.

“[The settlement] does not affect [Reliance],” said the source.

“Reliance has given a letter to LyondellBasell that it is interested in the reorganisation plan for the company. [Reliance has] an unconditional bid for [LyondellBasell]. They will now wait for the management to make up its mind,” added the source.

However, an analyst described the settlement as a “minor setback”.

“The next step [for Reliance] has to be a binding offer,” added the analyst.

Reliance Industries first made a preliminary, non-binding offer for LyondellBasell in November 2009.

($1 = €0.73)

For more on LyondellBasell and Reliance, visit ICIS company intelligence
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By: Malini Hariharan
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