BASF and Engelhard find right formula.

Byline: Eric Culp

Jun. 4--FRANKFURT, Germany -- It took five months and an extra $700m ([pounds sterling]375m, e546), but it looks as if the time, money and effort have paid off for German chemical giant BASF in its attempt to buy US rival Engelhard.

The US company's board last week finally asked its shareholders to accept BASF's offer of a $39 a share, calling the price "fair value".

While expensive, the all-cash deal makes sense for BASF. It is the largest in its 140-year history and tops off a recent spate of acquisitions. Earlier this year BA