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Innospec (IOSP) Responds to Revised Offer For TPC (TPCG) From PE Firms

 November 08, 2012 02:05 PM

(By Balachander) Innospec Inc. (NASDAQ: IOSP) has responded to reports of a revised competing offer for TPC Group Inc. (NASDAQ: TPCG) made by private equity firms First Reserve Corp. and SK Capital.

Earlier in the day, Houston, Texas-based TPC said it has agreed on increased consideration of $45.00 in cash per share offered by First Reserve and SK Capital, both of which agreed to offer $40 per share for each share of TPC in August.

[Related -Innospec (IOSP) Unit Buys Strata Control Services]

Last month, TPC received a non-binding proposal to be acquired by Innospec - a maker of fuel-additives - for $44 to $46 per share in cash.

TPC is the number one North American producer by capacity of finished butadiene and other crude C4 derivatives for plastics and gasoline.

On Thursday, TPC said it terminated talks with Innospec and Blackstone Group LP (BX) and stopped providing due diligence information to them related to Innospec's non-binding proposal.

[Related -Innospec (IOSP) Withdraws Proposal To Acquire TPC (TPCG); Declares Special Dividend]

"We object strongly to the statements they have made, some of which are either false or misleading and which reflect a significant lack of understanding of Innospec's business, its strategy and its proposal," Innospec CEO Patrick Williams said, responding to statements made in the investment group's press release about Innospec and its non-binding proposal.

TPC operates in two segments, C4 processing and performance products. The C4 processing segment offers butadiene that is primarily used to produce synthetic rubber used in tires and other automotive products.

TPC's performance products segment provides high purity isobutylene, which is primarily used in the production of synthetic rubber, lubricant additives, surfactants, and coatings.

On Thursday, IOSP shares fell 2.75 percent to trade at $31.50, while TPCG shares gained 3.79 percent to trade at $46.57.

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