TPC Gets A Rival Buyout Proposal

TPC Group has received a nonbinding takeover proposal worth $44.00 to $46.00 per share from Innospec, which would get financing help from Blackstone Group. The deal would value TPC’s equity at as much as $720 million. TPC says it will begin negotiations with Innospec that could lead to a firm offer superior to the $40.00-per-share agreement that it signed with First Reserve and SK Capital in August. At least one major shareholder, Sandell Asset Management, complained that the $40.00 offer undervalued TPC. Sandell says it is pleased that TPC is negotiating for a better deal. Innospec and TPC have only modest business overlap. TPC processes mixed C₄ streams into products such as butadiene and polyisobutylene. Innospec makes tetraethyl lead, other fuel additives, and specialty chemicals. Innospec CEO Patrick Williams says he believes that “TPC is a good strategic and synergistic fit with Innospec.”