By Malini Hariharan
Reliance Industries' bid to acquire LyondellBasell is progressing quite rapidly. I am told that a team of top executives from the company is in the US holding discussions with LyondellBasell.
And according to this report in the Houston Chronicle, the team has also been enjoying Indian food in Houston.
My source tells me that Reliance is also is talks with LyondellBasell's creditors about rescheduling debt repayments. But the company has denied an Indian media repot that it would buy out a fifth of LyondellBasell's $27bn debt.
"Why do this? Creditors would have more confidence if Reliance takes on LyondellBasell. And so debt can be rescheduled," says the source.
Another Reliance team is also said to be visited LyondellBasell's plant sites in the US.
Everyone is now waiting for 15th December when the bankruptcy court is due to hear LyondellBasell's petition to extend the deadline until 6 September 2010 for discussing its reorganization plan with creditors. Reliance is likely to make a binding offer depending on how this court hearing goes.
What has surprised many is that no new names have emerged for LyondellBasell. It was widely expected that Reliance would face competition from other competing bidders. Have the complexities associated with LyondellBasell deterred others?