A Dummkopf deal

Is hot oil burning a hole in BASF’s pocket? Investors might think so looking at the German chemical and oil conglomerate’s $4.9bn all-cash hostile bid for Engelhard. The company has failed to justify the 23% premium it is paying for the US chemical company. Given the low multiple at which BASF is valued, a share repurchase would have made more sense. There’s nothing wrong with Engelhard. Along with the UK’s Johnson Matthey and Belgium’s Umicore it controls the market for catalytic converters, d...