German chemicals manufacturer Evonik has rejected a €10.3 billion ($11.7 billion) takeover bid by BASF as too low, sources close to the negotiations said on this week.
BASF, one of the world's largest chemicals makers, had offered about €22.15 per Evonik share, the sources said. Evonik shares, which closed at €18.07 on Thursday before news of BASF's approach, closed up 2.4% at €19.84 on Monday.
Shares in BASF were little changed after a 3.6% fall on Friday when BASF said it was in exploratory talks with Evonik.
BASF added on Monday it was taking a disciplined approach and would not comment on price as this was "based on a potential for synergies that can only be verified if Evonik is involved".
Evonik and its largest shareholder, the RAG foundation, declined to comment.
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.
Why did BASF go after Evonik?
A BASF company source said Evonik's portfolio was well suited to the group, offering possible cost benefits through synergies. A takeover would strengthen customer-facing business and boost company resilience, while also reducing dependency on the European market, the source added.
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BASF is at risk of losing its top global ranking by chemicals revenue to Sinopec. Last year its group revenue of €59.7 billion was almost the same as that of the Chinese company's chemicals division.
