Mukesh Ambani’s Reliance Industries Ltd (RIL) is offering a higher offer price to acquire a controlling stake in LyondellBasell (LB).

RIL had offered $12 billion in cash and debt in November last year to acquire the World’s third largest chemical firm, which is facing bankruptcy. Some reports indicate that the company has submitted a revised offer bid to the management of LB raising the amount to $13.5 billion. This will be the highest offer price ever by an Indian company for an acquisition abroad. RIL officials did not confirm the amount.

The Netherlands based company’s restructuring plans valued the firm at an even higher $15.5 billion therefore a source indicated that the management is not very keen on the offer by RIL. Some international brokerage houses estimate $14-15 billion total enterprise value as fair, but suggest a good deal would be below $12billion.

If the acquisition goes ahead it will so only after the LB’s restructuring is complete. RIL is expected to submit an official bid before the court hearing on February 10. The proposed offer would see LB come out of bankruptcy as RIL would acquire new stocks worth $2.2 billion and support a separate $2.8 billion rights offering by LB.

In another offer headed by the Apollo Group, the secured lenders of LB offered to convert $18 billion of the debt into equity while also agreeing to inject further $2.8 billion through fresh shares. According to sources this was the reason behind RIL raising its offer. The acquisition would transfer chemical plants and two oil refineries to RIL while giving it access to the US market.

RIL lifted about Rs 5,800 crore by selling a part of its treasury stock since September 2009 to make available funds for the acquisition. RIL at present is loaded with $4.65 billion of cash and $7.9 billion in treasury stock. A Goldman Sachs report suggested RIL to find out fresh investment opportunities as the company is to generate a surplus of $20 billion between 2011 and 2013.