RIL to decide on Lyondell bid today: Sources

With new facts emerging on LyondellBasell's state of debt, will RIL rethink its offer to take over the Dutch petchem giant? Sources say it will decide today.
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Dec 15, 2009, 11.25 AM | Source: CNBC-TV18

RIL to decide on Lyondell bid today: Sources

With new facts emerging on LyondellBasell's state of debt, will RIL rethink its offer to take over the Dutch petchem giant? Sources say it will decide today.

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RIL to decide on Lyondell bid today: Sources

With new facts emerging on LyondellBasell's state of debt, will RIL rethink its offer to take over the Dutch petchem giant? Sources say it will decide today.

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RIL to decide on Lyondell bid today: Sources
India’s energy giant Reliance Industries (RIL) will take a call on submitting a final bid for bankrupt Dutch petrochemical company LyondellBasell (LB) on Tuesday, sources close to the development told CNBC-TV18’s Nayantara Rai.

Sources say the company is now concerned about LB’s high debt — pegged at about USD 27 billion — with the company’s lenders having the right to hike interest rates to 12% and many having done so.

It is learnt that after RIL carried out due diligence — it had earlier submitted a preliminary bid for the company prior to due diligence — new emerging facts about LB’s state could be a cause of worry.

In case of a buyout, RIL could also run into potential liabilities if it tries to shut LB’s old facilities. Sources said LB’s existing owner, Apollo Group, is also hostile to RIL’s bid to take over LB.

On November 22, LB in a statement said RIL had made non-binding cash offer to buy a controlling interest in the company, which was reported to be in the range of USD 6–10 billion.

Sources say that RIL could now face integration and management issues. A team of top RIL officials, which were in the US to explore the deal, are learnt to be back.

RIL has 24 hours to make its mind whether or not to file a binding offer for LyondellBasell.

Disclaimer:

This news is source-based and has not been provided to the stock exchanges.

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RIL to decide on Lyondell bid today: Sources

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