LONDON (From Gulf News) -- BASF SE is working with advisers and financing banks to examine the merits of making a counter bid for DuPont Co, the $55 billion chemical company that agreed to a merger with Dow Chemical Co in December, people with knowledge of the matter said.

The Ludwigshafen, Germany-based chemical producer hasn't made a decision yet about proceeding with an offer, said the people, who asked not to be identified because the information is private. No formal approach has been made to DuPont, the people said.

BASF, which has been working with advisers since last year to explore a bid for DuPont, held talks with the US company before it agreed to merge with Dow, said the people. Those talks didn't progress, the people said.

Representatives of BASF and DuPont declined to comment. DuPont, based in Wilmington, Delaware, jumped 5.3 per cent in after-hours trading. BASF has a market value of about €58 billion ($64 billion). Dow, based in Midland, Michigan, has a market value of about $56 billion.

DuPont discussed potential deals with multiple companies ahead of the Dec. 11 agreement with Dow, according to a March 1 regulatory filing by DowDuPont Inc, the name of the merged company. DuPont may be obligated to pay Dow a termination fee of $1.9 billion if it breaks the deal, the filing shows.

Meanwhile, Dow and DuPont's merger of equals is the largest deal ever in the chemical industry, creating a company with combined market values of $111 billion and assembling the world's largest agriculture business. DowDuPont would be the world's second-biggest chemical company after BASF.