US chems firm Innospec antes up in TPC bidding war

15 November 2012 14:18  [Source: ICIS news]

LONDON (ICIS)--Specialty chemicals company Innospec has submitted an improved bid for US butadiene producer TPC Group a week after an offer was accepted from a private equity consortium, TPC said on Thursday.

Innospec has increased its offer to $47.50/share (€37.05/share), trumping the $45/share offer that TPC had accepted from private equity firms SK Capital and First Reserve last week. Equity financing for an Innospec acquisition would be provided by a fund managed by US buy-out house Blackstone Group.

TPC said last week it had ended negotiations with Innospec following its acceptance of the First Reserve-SK Capital bid, a decision that has now been overturned.

“TPC Group's board of directors has authorised renewed discussions and negotiations with Innospec and has authorised allowing Innospec and its financing partners and representatives to resume their due diligence review,” the company said in a filing.

This is the second time that Innospec has offered a higher price for TPC after the company had accepted a bid from SK Capital and First Reserve.

TPC accepted a $40/share cash offer from the consortium on 27 August, which was beaten by a $44-46/share bid from Innospec on 8 October. The initial $40/share offer was worth $850m, including net debt, the company said at the time.                                                                                                                      

In a letter to the TPC board of directors, Innospec said that it expected to be able to submit a definitive offer before TPC's general meeting of shareholders on 5 December.

($1 = €0.78)

By: Tom Brown
+44 208 652 3214

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