RIL in deal with LyondellBasell for super-voting power: reports

22 Feb 2010

1

India's Reliance Industries Ltd, which again sweetened its offer to take control of LyondellBasell Industries when it exits bankruptcy, (See: Reliance hikes offer for LyondellBasell: report) would give Reliance a minority stake in Lyondell, but would give the Indian company super-voting power to control Lyondell's board, Bloomberg and The Wall Street Journal, reported, both quoting unnamed sources.

The revised bid will allow Lyondell's creditors to opt for cash or equity as part of the deal.

Lyondell had rejected a previous sweetened bid that valued the company at around $13.5 billion. That offer had been increased from an initial November bid valuing Lyondell around $12 billion.

Lyondell recently settled a dispute with creditors that paved the way for an exit from bankruptcy, leading analysts to suggest that Reliance may be forced to raise its offer or abandon it.

A deal between Reliance and Lyondell would create a mammoth energy and chemicals conglomerate with nearly $80 billion in combined revenue. Lyondell is the world's third-largest chemical maker and both companies have oil-refining operations.

But Reliance could still face an uphill battle in its overtures as creditors are already engaged in a separate restructuring plan to take Lyondell out of bankruptcy protection.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more