Mukesh Dhirubhai Ambani's Reliance Industries Ltd. has been interested in acquiring the petrochemical giant Lyondell Basell Industries for quite some time.

Initially, the company had made a bid of $13.5 bilion but when the pending creditors issue was solved at LBI, they invited higher bids from Reliance.

Reliance somehow managed to increase the bid by 1 billion dollars to $14.5 billion, but the investors were not very positive about Reliance's move. The shares had dipped after this announcement.

But when a newspaper report on the acquisition said that the acquisition might fail, Reliance shares have rallied by 2 percent early on Tuesday.

Reliance Industries is India's largest listed firm in the petrochemical business and has interests in oil and gas exploration. The Reliance stock had touched the levels of Rs. 994 up by 1.6 percent when the market was up by just 1.3 percent. In the opening deals it had risen as much as 2.1%.

Reliance bid is expected to get rejected by the US private equity firm Apollo Management and the market has absorbed this news quite positively. There are speculations now that RIL might now try acquiring Canada's Value Creation for $2 billion if its bid for LyondellBasell fails.