02 March 2010 10:00 [Source: ICIS news]
Correction: In the ICIS news story headlined "Reliance to pursue targets if LyondellBasell bid fails - analysts" dated 02 March 2010, please read in the first paragraph ... $14.5bn ... instead of ... $14.5m .... A corrected story follows.
“[Reliance] will be looking at organic growth as it is presently flush with funds and will need to use them,” said Deepak Parikh of Mumbai-based Angel Securities.
Media reports on Tuesday indicated that LyondellBasell had rejected Reliance’s latest bid offer.
“This response was expected. Reliance should definitely not be surprised by this move,” Parikh added.
Over the past couple of months, Reliance had raised funds for an acquisition of LyondellBasell deal by selling stocks.
An analyst with Mumbai-based Motilal Oswal Securities, who declined to be named, said: “Reliance has the financial strength and the capacity to acquire global companies. It is just a matter of time before it finds another suitable company.”
Angel Securities’ Parikh added: “Reliance will try to grow organically and it will make more sense if Reliance tries to acquire an upstream venture instead of petrochemical firms.”
Parikh said that Reliance has enough petrochemical production and adding to that would not be feasible.
Neither Reliance nor LyondellBasell was available for comment.
($1 = €0.74)
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