By Emma-Victoria Farr
FRANKFURT (Reuters) - Covestro's management should allow Abu Dhabi National Oil Co (ADNOC) access to conduct due diligence in its ongoing pursuit of the German chemicals firm, top 15 investor Union Investment said on Tuesday.
The state oil giant is considering submitting an improved bid of 60 euros per share in the coming days, as well as pledging job guarantees and around $8 billion investment in the company after the deal, Bloomberg News reported on Monday.
This could value the German plastics and chemicals maker at around 11.3 billion euros ($12.41 billion).
"In our view, such an offer fulfils the pre-requisite for the board to enter into in-depth takeover negotiations," said Arne Rautenberg, fund manager at Union Investment, in an emailed statement to Reuters.
The German fund manager owns around 3.2 million shares or 1.7% of Covestro, making it a top 15 investor in the business.
The crucial question should not be whether Covestro remains independent, but more importantly what ADNOC intends to do and how heavily it will invest in the business, Rautenberg said.
A takeover could make Covestro more competitive, Rautenberg added. Covestro declined to comment.
Reuters had reported in August that ADNOC had verbally signalled to Covestro it could raise its informal offer to 60 euros per share if the German company agrees to enter formal talks.
($1 = 0.9109 euros)