BASF considers raising offer for Evonik, sources say

By Matthias Inverardi

DUESSELDORF, Germany, Oct 9 (Reuters) - BASF, under pressure from Chinese rivals, could raise its offer for Evonik if there are talks with the specialty chemicals maker, two people close to BASF told Reuters on Friday.

Evonik said in September that BASF, one of the world's largest chemicals makers, had approached it over a possible takeover, but added that no talks were currently taking place.

People close to the negotiations later said Evonik had rejected the bid of €10.3 billion ($11.7 billion), or €22.15 per share, as too low.

"It is safe to assume that the current offer is not the final word," one of the people close to BASF said.

Shares in Evonik were up 1.2% to €21.24 at 0900 GMT on Friday having risen as much as 2.7% against Thursday's close.

The board of trustees of Evonik's largest shareholder, the RAG Foundation, would be meeting later on Friday to discuss the matter, a spokesperson for the foundation said.

A BASF spokesperson declined to comment.

Evonik reiterated that no talks were currently underway.

REGIONAL STATE COULD PLAY KEY ROLE

BASF was also considering commitments to Evonik employees, the people said.

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

The state could have significant influence because state premier Hendrik Wuest sits on the board of trustees of RAG Foundation. Any sale of the foundation's shares would require the board's approval.

BASF, which makes engineering plastics, super-absorbent polymers, vitamins and chemicals for industrial uses, is at risk of losing its top global ranking by chemicals revenue to China's Sinopec, whose chemicals division revenue was broadly neck and neck with BASF's group revenue of €59.7 billion last year.

Evonik's portfolio, which includes high-tech plastics and feed additives as well as ingredients for coatings and household products, would offer possible cost benefits through synergies with BASF, a BASF company source said last month.

(Reporting by Matthias Inverardi, additional reporting and writing by Linda Pasquini, editing by Thomas Seythal and Elaine Hardcastle)