Evonik declines takeover negotiations after BASF improves its approach

Evonik ($EVK)’s executive board declined to enter takeover negotiations with BASF ($BAS) after reviewing the larger chemicals group’s renewed approach. Reuters reported that the improved proposal values Evonik at €24 a share, or approximately €11.18 billion, compared with an earlier €22.15 per-share approach. The new development is Evonik’s response to the revised terms, rather than a newly agreed transaction.

The board said it remains committed to developing Evonik independently. It is willing to hold a confidential exchange limited to explaining its position and allowing BASF to outline the industrial reasoning behind its interest. That willingness does not amount to formal deal negotiations or acceptance of an offer. The response leaves BASF’s proposed combination without the target board’s support and preserves significant uncertainty over whether any transaction will proceed.

Sources:

• eqs-news.com
• Reuters