FRANKFURT (Thomson Financial) - RAG Stiftung has increased the stake in
Evonik Industries AG it plans to sell to above 25 percent, giving the future
owner the right to veto key decisions, Financial Times Deutschland reported,
citing people familiar with matter.
The four buyout firms still in the running to acquire the stake - KKR, CVC
Capital Partners, Bain Capital and Blackstone Group - have persuaded RAG to lift
the stake to 25.1 percent from previously 25 percent, the paper said.
Government controlled RAG, a foundation that is winding up Germany's
hard-coal mining industry, will in return require the new owner to hold on to
the Evonik stake for at least three years, the paper cited its sources as
saying.
Bids are now "significantly above" the previously estimated selling price of
2 billion euros, Financial Times Deutschland and Frankfurter Allgemeine Zeitung
(FAZ) said in separate reports, both citing sources.
FAZ also reported that current bids would put Evonik's total market value at
about 9 billion euros.
Even though RAG will make the final pick among the suitors on June 11, all
four bidders are still in the race because RAG plans to benefit from the fierce
competition among them to win more concessions from the potential buyers,
Financial Times Deutschland said, citing people familiar with the negotiations.
ludwig.burger@thomsonreuters.com
lb/rfw
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