Reliance raises bid for LyondellBasell by US$1.5 billion

22-Feb-10
Reliance Industries has raised its bid for LyondellBasell to around US$15 bln from an earlier offer of US$13.5 bln, on February 19, the deadline for RIL to submit its revised proposal. In a bid to make the revised offer more lucrative, RIL is reported to have also included stock and cash options for shareholders and creditors in its offer. This revision in RIL’s bid comes after the management of LyondellBasell inked a deal with unsecured creditors, raising the amount to be paid out to holders of general unsecured claims by US$150 mln. These creditors had been blocking LB’s attempts to emerge from bankruptcy. As per the new terms, US$450 mln will be distributed to the holders of general unsecured claims, millennium bonds and 2015 notes against the earlier offer of US$300 mln. This move could pave the way for the company to emerge out of Chapter 11 bankruptcy. RIL has raised Rs 25,000 crore from the sale of treasury stock to fund its bid.
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