US specialty chemicals firm Innospec withdraws $745 mn bid for TPC Group

US specialty chemicals maker Innospec Inc yesterday withdrew its $745-million bid for TPC Group Inc, paving the way for a rival bid from private equity firms First Reserve Corp and SK Capital Partners to go through for North America's largest producer of finished butadiene.

''While we still feel that it is a good fit with Innospec, we are unable to conclude a deal structure in a manner where we are totally satisfied with the value creation for our shareholders,'' Innospec CEO, Patrick Williams said in a statement.

Littleton, Colorado-based Innospec and private equity firm Blackstone Group had raised their bid in November to $744 million from $721 million in order to fend off an agreed takeover offer from First Reserve and SK Capital Partners.

TPC had recommended that its shareholders vote for First Reserve Corp and SK Capital revised offer of $45 per share although Innospec has offered $47.50.

But Innospec's offer is subject to certain conditions, including securing debt financing, completion of due diligence and receipt of internal approvals, while First Reserve Corp and SK Capital have repeatedly said that their offer is superior and it was unlikely that Innospec would close the deal by this year.

Founded in 1944, TPC, formerly known as Texas Petrochemicals, is a global leader providing a diverse range of products to global chemical and petroleum-based companies.