Evonik likely to reject BASF's sweetened $12.5 billion bid, FT reports

Evonik Likely to Reject BASF's $12.5 Billion Takeover Bid as Too Low

Evonik's Response to BASF's Takeover Offer

Oct 30 (Reuters) - German chemicals firm Evonik is expected to reject a sweetened €11.18 billion ($12.48 billion) takeover offer from rival BASF, deeming it too low, the Financial Times reported on Thursday, citing people familiar with the matter.

Details of the BASF Offer

• Evonik considers BASF's bid of €24 per share as undervaluing the company and could make a statement in the coming days, the report said

Potential for Future Negotiations

• Evonik could be open to future talks if BASF improves its offer further and gives more clarity on the merits of a tie-up, but currently prefers to pursue its standalone strategy, the report said

Company Reactions

• Evonik declined to comment. BASF did not immediately respond to Reuters requests for comment outside regular business hours

Background and Competing Interests

• Chemical company BASF improved its bid last week from an original €22.15 euros per share, which Evonik had rejected in September

• Evonik has also been eyeing a $3.3 billion acquisition of US specialty chemicals firm Ashland, which BASF considers too risky

Exchange Rate Information

($1 = 0.8957 euros)

Reporting Credits

(Reporting by Rodrigo Ramirez in Mexico City; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)