BASF Prepared to Raise Engelhard Offer

BERLIN – German chemical maker BASF AG said Tuesday it is prepared to raise its offer for specialty chemical business Engelhard Corp. after the U.S. company snubbed its initial $4.9 billion takeover bid.

Ludwigshafen-based BASF launched its hostile bid last month after Engelhard rejected its offer to negotiate a friendly takeover.

BASF said Tuesday that while its $37-per-share bid remained “fair and compelling,” it would raise it to as much as $38 if Iselin, New Jersey-based Engelhard provides more information about its business.

“We are committed to our goal of acquiring Engelhard,” BASF chairman Juergen Hambrecht said. But in rejecting its approaches, “Engelhard did not provide any information that would prompt us to improve the terms of our current offer.”

Acquiring catalyst maker Engelhard would make BASF a leading provider worldwide in the fast-growing catalyst market and combine the companies’ research and development arms.

BASF says its offer, which expires on Feb. 6, represents a 30 percent premium on Engelhard’s stock price over its 90-day average at the end of last year.

However, the shares gained 69 cents, or 1.7 percent, to $40.40 on the New York Stock Exchange on Tuesday afternoon, suggesting investors expect a substantially higher bid.

In Frankfurt, BASF shares fell 0.3 percent at 61.95 euros ($75.81).

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On the Net:

http://www.basf.com

http://www.engelhard.com