Cognis owners spurn higher Lubrizol offer
FRANKFURT (Reuters) The private equity owners of chemicals group Cognis have cold shouldered a takeover offer from Lubrizol even though it was higher than that of favored bidder BASF, sources familiar with the matter told Reuters. maker of specialty plastics and engine oil additives, has made a bid worth about 3.2 billion euros ($4.0 billion) including assumed debt for Germany's Cognis,asics gel, said one of the people this weekend,coach bags, speaking on condition of anonymity.
"The sellers were told (Lubrizol's) price is firm. Some work would need to be done to complete the offer but that could be done in a matter of days,bottega veneta," that source said.
But buyout firms Permira and Goldman Sachs Capital Partners ,tory burch outlet, which control Cognis, have granted chemical industry heavyweight BASF preferred status during the bidding process even though BASF's offer stands at around 3.1 billion euros, a second source added.
BASF has been granted more detailed information to appraise the target's businesses than rival Lubrizol,soccer jerseys, which has not been given the chance to carry out a due diligence assessment,coach outlet, they said.
Overall, BASF remains on track to strike a deal early next week, though there remains a chance that talks could drag on until the end of June, they said.
Goldman, Permira and BASF declined to comment. Lubrizol was not immediately available for comment.
Lubrizol's Chief Executive James Hambrick, a chemical engineer who has spent his entire career at the Wickliffe, Ohio based company,polo ralph, has said he is eyeing geographic expansion and targeted acquisitions.
An offer of 3.2 billion euros would value Cognis at about 7.6 times annual earnings before interest,oakley vault, taxes, depreciation and amortization (EBITDA), slightly above the around 7.4 average multiple for listed European chemical makers, Thomson Reuters StarMine data show.
Haggling over liabilities has been holding up an otherwise done deal between BASF and the owners of Cognis, sources have told Reuters.
Permira and Goldman are keen to pass along to the new owner all risks associated with the German company, including pension liabilities, and BASF outgoing chief executive Juergen Hambrecht is said to be negotiating hard to get a price discount for whatever liability he leaves behind with BASF.
Cognis, a maker of additives for cosmetics and detergents, has made a specialty of using raw materials from palm trees, coconut and corn.
Analysts have said these products would sell well through BASF's existing marketing channels,the north face, and a takeover would also be a timely bet on a recovery in consumer goods markets.
BASF's core chemicals and plastics business now relies on industries such as automotive and construction,salvatore ferragamo, which were buffeted particularly hard by the economic crisis.
Sources have told Reuters that BASF had become a clear frontrunner in the auction, which had attracted Lubrizol and at least one other company. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.

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