New York: Reliance Industries Ltd has recently sweetened its offer to buy a controlling stake in bankrupt chemicals firm LyondellBasell Industries, a source familiar with the situation told Reuters.
Under the revised offer, Reliance, India's biggest conglomerate, controlled by billionaire Mukesh Ambani, is boosting the valuation of Lyondell to $13.5 billion, up from $12 billion in an initial bid made in November, said the source, who did not wish to be identified.
The source was not authorised to speak to the media.
As per the new proposal, Reliance would purchase about $2.2 billion in new stock and support a separate $2.8 billion rights offering by LyondellBasell to take the company out of bankruptcy, the source said. It would also seek voting control to implement synergies with Reliance even if it only holds a minority stake, the source said.
Reliance declined comment in Mumbai. A spokesman from Lyondell also declined to comment on its discussions with Reliance, saying it is bound by a confidentiality agreement.
Earlier on Thursday, the WSJ reported Reliance had sweetened its offer for LyondellBasell.
Bureau Report
First Published: Friday, January 08, 2010, 23:46