Argentina Rejects Braskem’s Indupa Buy

Argentine securities regulators have rejected part of Braskem’s $290 million purchase of South American polyvinyl chloride maker Solvay Indupa. Last month, Braskem had agreed to purchase Solvay’s 71% interest in the firm, which trades publicly on the Buenos Aires Stock Exchange. Regulators say Braskem needs to come up with a more equitable tender offer than the 1.35 pesos, or 20 cents per share, which it is making to Indupa’s other shareholders. Indupa’s shares recently closed at 3.55 pesos. Braskem asserts that its offer is fair and represents a 153% premium over what it is offering Solvay for its shares.