Blackstone and Colorado-based fuel-additives producer Innospec have raised their offer for petrochemicals maker TPC Group to $744.7m, a week after the company ended talks with the pair in favour of a joint bid from First Reserve and SK Capital.
Blackstone has backed Innospec’s revised offer of $47.50 a share for TPC, up from a range of $44 to $46, the company said in a statement released today.
Innospec will resume takeover talks with TPC, enabling the pair to resume due diligence.
TPC accepted an improved $45 per share bid from SK Capital and First Reserve on 8 November after the pair’s initial $40 a share offer – which valued the company at $627m – was rejected.
That offer was met with anger from the company’s third-largest shareholder, Sandell Asset Management, which said it “grossly undervalues” TPC – despite representing a 20 per cent premium to the company’s last closing price before details of the deal emerged.
Texas-based TPC produces chemicals used in synthetic rubber, fuel additives, plastics and surfactants, but has seen demand for its main tyre product dry up in recent months.
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