08 March 2010 11:12 [Source: ICIS news]
Correction: In the ICIS news story headlined “LyondellBasell rejects latest €15bn Reliance offer" dated 8 March 2010, please read the headline as “…$15bn Reliance offer” instead of “… €15bn Reliance offer”
LONDON (ICIS news)--Lyondellbasell has rejected Reliance's latest takeover bid after concluding it was “not higher and better” than its current reorganisation plan as it attempts to emerge from Chapter 11 bankruptcy protection, the global polymer giant said in a court filing on Monday.
LyondellBasell’s management board and independent supervisory board said that after having analysed the Indian energy major's most recent proposal, they felt it was not, “sufficiently valuable to abandon” its amended reorganisation plan.
Reliance increased its offer for LyondellBasell to nearly $15bn (€11bn) from $13.5bn on February 21. The new offer came with a stock and cash options for shareholders and creditors, based on media reports.
“The proposal….did not assure a higher overall value for LyondellBasell than that upon which the [reorganisation] Plan is based; it continued to provide Reliance with effective control over LyondellBasell, even if it owned only minority position and did not pay a premium,” LyondellBasell said in its court filing.
“It [Reliance] did not put any Reliance assets at risk should a transaction be pursued and fail,” LyondellBasell added.
($1 = €0.73)
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