UPDATE 3-TPC gets higher offer from First Reserve, SK Capital
* PE firms raise offer by 12.5 percent to $45/shr
* TPC shares rise above offer price
* At least one shareholder expects a higher offer
By Swetha Gopinath
Nov 8 (Reuters) - Chemical maker TPC Group Inc said private equity firms First Reserve Corp and SK Capital Partners raised their offer for the company by 12.5 percent, a month after Innospec Inc and Blackstone Group LP's rival bid.
TPC shares rose 3 percent above the new offer price of $45 in early trading on Thursday, with at least one of its largest shareholders saying it expected a higher offer.
The latest offer, raised by $5, values TPC at about $705 million. Blackstone and TPC rival Innospec last month offered to pay between $44 and $46 per share in cash.
The $45 per share offer price represents a 0.3 percent premium to TPC's Wednesday close of $44.87 on the Nasdaq.
"This is a very modest increase to the original offer (from the PE firms) and is insufficient to materially change my views of the original offer," Chris Wallis, chief executive of TPC shareholder Va u ghan Nelson Investment Management, told Reuters. Continued...