Lyondell spurns RIL’s revised offer | business | Hindustan Times
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Lyondell spurns RIL’s revised offer

business Updated: Mar 03, 2010 00:00 IST
HT Correspondent/Agencies

Reliance Industries Ltd’s revised $14.5 billion (Rs 66,715 crore) offer to acquire control of LyondellBasell faced hurdles again on Tuesday after reports of its rejection by the creditors of the bankrupt Dutch company.

"Indian billionaire Mukesh Ambani's $14.5 billion bid for Lyondell, the world's third-largest chemical company, is expected to be rejected by a creditor group led by Apollo," the New York Post said.

Bloomberg, citing unnamed sources, reported later the offer had already been rejected.

Citing people familiar with the matter, the Post said private-equity firm Apollo Management, of billionaire Leon Black, was poised to prevail over Mukesh Ambani-led RIL in its battle for LyondellBasell.

The move would set the way for Apollo to merge LyondellBasell with its Hexion Specialty Chemicals operation, the paper said. RIL officials offered no comment on the report.

A hearing on a reorganisation plan at the US bankruptcy court in Manhattan that would transfer ownership of the company to the creditors is scheduled for next Monday.

LyondellBasell's US operations and one of its European holding companies had filed for Chapter 11 bankruptcy protection under US laws in 2009.

Last November, LyondellBasell and RIL disclosed a “preliminary non-binding offer” by the Indian firm to take a majority stake in the chemical major.

Last month, RIL had sweetened its earlier offer by $1 billion (Rs 4,601 crore) to $14.5 billion.

Last month, LyondellBasell had said the unsecured creditors and holders of its substantial debt had agreed to support its reorganisation plan.