Jones Lang LaSalle


Engelhard agrees to 'discuss deal' with BASF

There may finally be a breakthrough in the standoff between New Jersey-based Engelhard and BASF, the big German chemical maker trying to acquire Engelhard.

In a statement released today, Engelhard said is has entered into a "confidentiality agreement" with BASF to discuss the deal, something Engelhard had resisted.A key sticking point had been the failure to reach an agreement to discuss financial details. BASF has said that it might raise its offer if it takes a closer look at Engelhard’s finances.Engelhard also scheduled its annual meeting for April 21.Earlier this month, BASF extended the deadline for its cash tender offer of $37-per-share until March 17 from a previous deadline of March 3.Iselin-based Engelhard, which has opposed the $4.9 billion, unsolicited offer made in January, has said it is exploring other options, including the sale of the company.Some analysts have expressed concern that if Engelhard doesn’t accept BASF’s offer, its stock price could fall sharply.

Contributed by David Schwab