RIL closes up 1% amid reports of Lyondell bid failing

By PTI | Mar 02, 2010, 06.47 PM IST

MUMBAI/NEW YORK: Investors in RIL shares today appeared to have cheered reports in the US media that creditors would reject corporate giant Reliance Industries' USD 14.5-billion takeover bid for American chemical major LyondellBasell.

Leading US newspaper 'The New York Post' reported that RIL's bid was likely to be rejected by the creditor group led by private equity firm Apollo Management.

"Indian billionaire Mukesh Ambani's USD 14.5 billion bid for Lyondell, the world's third-largest chemical company, is expected to be rejected by a creditor group led by Apollo," the paper said.

Spokesperson of RIL, which only last month upped its offer of USD 13.5 billion by a billion dollar for resting control of crisis ridden US chemical giant, declined to comment.

Investors in RIL shares, however, cheered the news of a possible fallout of the company's bid with its shares surging over two per cent on the bourses. Shares of RIL, the biggest company in terms of market capitalisation, later settled with a gain of 0.78 per cent at Rs 986.60 on the National Stock Exchange.

The BSE benchmark Sensex also closed 343 points higher at 16,772.56.

Quoting people familiar with the matter, the Post said billionaire Leon Black's Apollo Management is poised to prevail over RIL in its battle for LyondellBasell.

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