BASF raises Evonik offer to €24 a share, sources say

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MUNICH, Oct 23 (Reuters) - BASF has increased its takeover offer for German chemicals manufacturer Evonik Industries to €24 per share, two people close to the deal told Reuters on Friday.

The offer, increased from an original bid at around €22.15 per share, would value Evonik at around €11.18 billion ($12.51 billion).

Evonik, which in September rejected BASF's €10.3 billion bid as too low according to sources, declined to comment.

Bloomberg News first reported on Friday that the German chemicals giant had raised its offer to more than €11 billion, citing people familiar with the matter.

BASF's renewed offer comes a day after Evonik's interest in acquiring US firm Ashland, valued at around $3.3 billion, surfaced.

Evonik's interest in Ashland started before BASF launched its takeover bid, two people familiar with the matter told Reuters.

BASF considers an acquisition of Ashland by Evonik to be too risky, according to a source close to the matter.

Evonik's shares were up 2.3% at €21.18 at 1342 GMT, BASF shares were down 0.17%.

Evonik's largest shareholder, the RAG Foundation, also declined to comment.

JOBS GUARANTEE

Evonik's products include high-tech plastics and feed additives as well as ingredients for coatings and household products. BASF makes engineering plastics, super absorbent polymers, vitamins and chemicals for industrial uses.

BASF said on Thursday it would honour existing agreements to preserve jobs made by Evonik in the event of an acquisition and warned that more painful takeover approaches from abroad were looming.

The German state of North Rhine-Westphalia, where Evonik is based, said earlier this month that jobs at Evonik and its independent development must not be jeopardised by a takeover.

($1 = 0.8937 euros)

(Reporting by Alexander Huebner in Munich, Sathvi G Bhat in Bengaluru; Writing by Tristan Veyet in Gdansk, Editing by Jonathan Ananda, Matthias Williams and Susan Fenton)