Conglomerate Bids For Lyondell; Price Tag Questioned
LyondellBassell spokesman disputes $12 billion price for chemicals company
November 23, 2009
LyondellBasell may be owned by an Indian conglomerate when it emerges from bankruptcy, but a spokesman told IDD on Monday that published reports suggesting Reliance Industries will pay $12 billion for the chemical giant are pure speculation.
LyondellBasell, a portfolio company of New York buyout firm Apollo Management, announced the preliminary non-binding offer from Reliance on Saturday without disclosing terms.
"This offer is in addition to those previous non-binding equity financing proposals that we have received from other parties," said LyondellBasell's spokesman David Harpole. He declined to identify other prospective suitors or comment further on Reliance's bid price.
Apollo, Ares Management and Kohlberg Kravis Roberts are interested in buying the chemical concern as a consortium, according to published reports.
In a separate matter last month, LyondellBasell requested that the maturity date on its $8 billion debtor-in-possession loan be extended to Feb. 3.
LyondellBasell filed its preliminary reorganization plan on Sept. 11 with the Southern District of New York bankruptcy court. The chemicals company filed for Chapter 11 bankruptcy protection in January.
The company's case, listed under number 09-10023, is being administered by Judge Robert Gerber.
Cadwalader, Wickersham & Taft is serving as counsel to LyondellBasell, while Evercore Partners and AlixPartners are serving as its financial and restructuring advisors, respectively.
Brown Rudnick is acting counsel to the unsecured creditors' committee.
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