Report: Apollo Poised to Win LyondellBasell Deal

(Reuters) – A creditor group led by U.S. private equity firm Apollo Management [APOLO.UL] is expected to to reject India’s Reliance Industries Ltd’s (RELI.BO) bid for bankrupt chemicals maker LyondellBasell, the New York Post said, citing people familiar with the situation.

The move would pave the way for Apollo to merge LyondellBasell with its Hexion Specialty Chemicals, operation, the paper said.

On Feb. 22, a source told Reuters that Reliance Industries had raised its bid for LyondellBasell to an offer which values the company at $14.5 billion. 

The Post quoted one Lyondell creditor as saying “Reliance is making a mistake by not offering more.”

Lyondell may file a reorganization plan on Monday with the U.S. bankruptcy court in Manhattan that will transfer ownership of the company to the creditors, according to the paper.

Lyondell, which was forced into bankruptcy just over a year ago amid a cash crisis, has been sparring with creditors for months over a $22 billion lawsuit the creditors brought against the banks, advisers and executives who put together Lyondell’s leveraged buyout by Basell in 2007.

Apollo Management could not be immediately reached for comment by Reuters outside of regular U.S. business hours. (Reporting by Sakthi Prasad in Bangalore; Editing by Hans Peters)